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NEWS

Partners disagree over income tax reduction

Apr 23, 2008
Staff and wire reports

TALLINN - A rift has formed in Estonia’s ruling coalition over whether to reduce income taxes, a key pre-election promise made last year by the Reform Party that, according to critics, threatens to exacerbate the country’s shaky public finances. The Social Democrats, a junior partner, say further reductions in the income tax should be halted due to the worse than expected economy, while the Reformists believe that lowering taxes is needed to stimulate economic development. “The continued red ...


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