The Tax Strategy Group is an interdepartmental committee chaired by the Department of Finance, with membership comprising senior officials and advisors from the Departments of Finance, Taoiseach, Enterprise Trade and Employment, Social Community and Family Affairs and the Revenue Commissioners. Papers on various options for the Budget and for the medium and longer term are prepared for the Tax Strategy Group. Its terms of reference are as follows:

• To examine and develop proposals for measures in the areas of taxation, PRSI and levies, for Budget and Finance Bill within agreed Government parameters for the overall Budget position and in the context of the framework of a medium term and longer term strategy set out in the Government's programme, and

• To examine the strategic approach for a general social welfare package and to assess the interaction of income tax/PRSI/levies proposals with social welfare proposals including child income support, and in particular the impact of this interaction on the labour market and income distribution.