Nurse’s ‘hopeless’ situation with taxes

A young Galway nurse has spoken of the ‘hopelessness’ of her financial situation caused by a ‘cruel’ taxation system – as she pays more in pension levy each payday than she does towards her own retirement fund.

The mother-of-one – who works at University Hospital Galway – has already been forced to sell her home after its negative equity reached €100,000.

Now, left working long hours and not knowing how to cope, she has demanded to know: “Why is the Government deducting more in pension levy from my salary than I am contributing to my own pension fund and how is this compassionate?

“I don’t know where to start or how to cope. I am working all the hours God sends. There is no respect, the way I’m being treated. My taxes are cruel. Is my hopelessness the price of recovery?” she asked.

From her fortnightly pay packet, she pays €107.21 in pension levy, while her personal contribution to the State pension is €86.81. So far this tax year, she has paid €2,604 in pension levy and €1,987 into her pension fund.

This is on top of PAYE of €6,160; PRSI of €1,620 and USC of €2,175.

The mother of a six-year-old child spoke of her plight when she met with Senator Fidelma Healy Eames at UHG last Thursday.

The Senator said: “She was at the end of her tether trying to make ends meet having already lost €100,000 in the value of a home she had to sell, due to negative equity.

“In essence, the State requires her to pay €20 more in a pension levy than contribute to her own retirement fund and that’s with the uncertainty about the reliability of pensions into the future. The pension levy is a cruel ill-thought out tax.

“We all know that taxes are extremely high in this country, but the real impact on workers is best proven by seeing the reality of deductions on payslips.

“And if we think the pension levy is bad, this young stressed-out working mother has already had a further €9,957 deducted in PAYE, PRSI and USC so far this year.

“I want to see a real improvement in this young woman’s lot in the forthcoming Budget. I want her to be able to afford basic renovations to her home, something that she cannot now afford due to her inordinate tax burden. She is but one of thousands of Irish working families in the same situation,” said Senator Healy Eames.