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Sweden Government Cuts Income Taxes for Fifth Time Next Year

Sweden’s government plans to cut income taxes in the largest Nordic country next year for the fifth time since coming to power in 2006.

The four-party coalition will reduce taxes for income earners by 15 billion kronor ($2.3 billion) in 2014, the government said in a press release handed to reporters today in Stockholm. The cuts include 12 billion kroner as an earned income tax credit and 3 billion kroner on raising the threshold for the state income tax.

The measures will lead to 13,000 new jobs, the government said today.

The government has previously announced it will cut taxes on pensions, lower payroll taxes for companies that hire young people and reduce the unemployment insurance next year. It will also spend more on education and give financial support to companies that hire and train inexperienced youth.

The government presents its entire 2014 budget on Sept. 18.

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