Taxing pensioners

Sir, – What is happening to ordinary pensioners highlights the stark difference between the way political pensioners and ordinary…

Sir, – What is happening to ordinary pensioners highlights the stark difference between the way political pensioners and ordinary pensioners are treated by this Government. A Labour minister, Brendan Howlin, introduced a 9 per cent cut in any former politician’s pension over €100,000. Politicians who had two pensions, one ministerial and the other a TD’s, would not have their pensions combined for the purpose of arriving at how much they would be cut. This means that one could have a total of over €100,000 and still not be cut. How then can this be termed a cut? Contrast that with those on pensions which are a pittance compared to the size of most political pensions. It is simply a way of politicians dodging their responsibilities and continuing to foster a political elite.

Tough but fair was Minister for Finance Michael Noonan’s cry before the introduction of the recent Budget. Hardly. This Government is well able to compete with the previous one for dishonesty and cynicism.

Too often have the media refused to have a real go at this scandal. Politicians need to be challenged about measures that are unjust. One continues to hope for a change. The people will not continue to give their support to such a bunch. Time to take to the streets again? – Yours, etc,

GEORGE D WEBB,

Grange Wood,

Rathfarnham, Dublin 16.

Sir, – Though not necessarily deliberately, 115,000 citizens have underpaid their income taxes in recent years. How much other taxable income is falling through the gaps due to the lack of information-sharing between Governmental departments? Surely, this highlights the need for mandatory filing of tax returns for any individual aged 18 or above with a PPS number? Mandatory tax returns would also facilitate taxing the likes of child benefit, an outcome more socially equitable than the straight line cuts of recent years. – Yours, etc,

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ALAN KELLY,

Mulberry Drive,

Castleknock, Dublin 15.

Sir, – Pól Ó Cionsalígh (Taxing pensioners, January 9th) is being incredibly naive when he asks “Why don’t the Revenue Commissioners go after all the big tax evaders instead of vulnerable and soft targets like the pensioners?”

Doesn’t he realise that the former can afford clever accountants and lawyers who can drag out disputes for so long that it is simply not cost-effective to try to get any money out of them. Pensioners are much easier to deal with since their income can easily be seized at source even before it gets into their bank accounts. – Yours, etc,

MARTIN D STERN,

Hanover Gardens,

Salford, England.

Sir, – Growing old in Ireland is rapidly becoming a punishable offence. The so-called “Golden Years” are being transformed into a dark landscape whose principal features are insecurity, anxiety, stress and isolation.

I am one of the recipients of a letter from the Revenue Commissioners advising me that because of an understatement of my state pension I am liable for an increase in tax. This although the full amount of this pension has been entered on my tax return year after year. It is beyond my comprehension.

Add to this: frozen pension (minus Christmas bonus); universal social charge; reduction in free electricity units: reduction in medical card cover for dentistry; increase in VAT; increase in Dirt on savings: increase in gas and electricity prices; the household charge and unspecified other taxes, plus a water tax.

Of course the elderly should contribute to the State rescue fund, but the level should be tempered by the fact during their working lives they have contributed to a fund to pay their pensions and enable them to take things easier as they live out their remaining years.

Today I heard that free travel is coming up for review. If this is true it is diabolical. Do we as a nation really want a high proportion of our elderly confined to four walls eking out a miserable existence on rapidly reducing disposable income? One of the yardsticks by which a society is judged is how it treats its elderly.

I am ashamed to be a citizen of a country which places the well being of investors in failed banks at a higher priority than the care, not just of the elderly, but also of its disabled and sick. How did we fall so low? – Yours, etc,

ROBERT BATES,

Delgany Park,

Delgany, Co Wicklow.

Sir, – The next time The Irish Times publishes the list of tax defaulters, you may need to consider a hefty, special supplement, to contain the 115,000 names. It could also pose a headache for your home delivery team! – Yours, etc,

SEAMUS BAYNES,

Novara Park, Bray, Co Wicklow.

Sir, – Just two short years ago the then government tried to withdraw free medical cards for high-income pensioners. This would have a removed a benefit to the wealthy that was widely derided on its introduction and was especially egregious at a time of a public funding crisis. Needless to say, the middle-class elderly vested interest rose up in anger and, ably supported by the media as well as the craven political class, defeated this eminently equitable move. Fast forward to today and the episode is repeated, with another campaign (with ample media support) to prevent the State obtaining due taxes from people with ample incomes. Meanwhile the young poor (working or unemployed) are forgotten.

For people with income to not pay tax in these times is not only criminal, it is morally reprehensible. For the media and politicians to support this disgraceful campaign is a sign of a State and a society that is morally bankrupt. – Yours, etc,

PHELIM MURNION,

Páirc Thiar,

An Spidéal, Gaillimh.

Sir, – As a pensioner, I find some of the present outcry understandable, but a lot of it is unnecessarily hysterical. The fact is that a person who only has a State old age pension does not have to worry about anything nor have they to do anything.

People who have an occupational pension in addition to the State pension may have a tax liability depending on the combined income, but any liability will be calculated in accordance with the normal rules. Those in this category who have declared their State pension don’t have to worry either.

Those who are lucky enough to have a substantial occupational pension as well as the State pension which they have not declared can expect further attention.

I think anyone in this last category who has been receiving an old age pension of nearly €12,000 per year and did not believe it to be taxable was not living in the real world. I should also mention that the State old age pension is exempt from the universal social charge. – Yours, etc,

JOHN MURPHY,

Monaloe Park Road,

Blackrock, Co Dublin.

Sir, – I am deeply disappointed at the failure of Revenue and the Department of Social Protection to efficiently and effectively exchange data in a timely fashion in order to levy taxes and I am deeply appalled that the household charge body and other State agencies propose to efficiently and effectively exchange data in a timely fashion in order to levy taxes. – Yours, etc,

RAY LEONARD,

Red Lane,

Blessington, Co Wicklow.