Fresh threats of a mass revolt similar to the ongoing household charge boycott have been made over Government plans to charge people for water meters.
"People understand that these combined taxes will quickly go to 1,000 euro and beyond," said Mr Higgins.
"They simply cannot afford it. It's a further destruction of the potential in the economy, intensifying austerity and creating more economic problems. People are absolutely right to oppose it and the campaign will intensify."
Taoiseach Enda Kenny confirmed that householders would have to pay for water meters, but that the Government would cover the installation cost. It is understood that could be funded from the national pension reserve.
No solid costs have yet been confirmed, but Mr Kenny said the Cabinet will discuss setting up an agency to oversee the plans.
"The Government will reflect on how to set up an agency to deal with the Programme for Government commitment to having a single water agency to deal with high standards, fixing of all the leaks and as a consequence, to save the taxpayer exceptional amounts of money," said the Taoiseach.
But Dublin West TD Mr Higgins said the measures represented another step in Fine Gael and Labour's "disastrous austerity policy", which he described as identical to that of Fianna Fail and the Greens.
"There has been and there is an ongoing and massive boycott against the home tax," added Mr Higgins. "The determination of ordinary people to resist these taxes would be further intensified as a result of the announcement that water meters and water charges are just around the corner."
Around a million homes will have to have water meters installed by the end of next year if the Government is to introduce water charges in time for 2014 - as agreed under the European Commission, IMF and European Central bailout deal.