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Spain: Tax cuts in 2014 for low-income earners

Thursday, 26 Dec 2013 | 10:01 AM ET
A man has his breakfast at a soup kitchen in Barcelona on December 17, 2013.
Lluis Gene | AFP | Getty Images
A man has his breakfast at a soup kitchen in Barcelona on December 17, 2013.

Spain's finance minister has told a business newspaper that the government plans to cut income taxes for low-income Spanish families in 2014 but that citizens in higher income brackets won't get the same windfall until the country's economy emerges from a prolonged crisis.

In an interview published Thursday, Cristobal Montoro did not tell the Expansion newspaper how much taxes will be lowered for low-income earners or specify the income levels they must have to receive the benefit.

Montoro said the administration of Prime Minister Mariano Rajoy predicts the Spanish economy will expand by 1 percent in 2014 after a punishing recession lasting years.

(Read more: Why Spain's bailout exit is not premature)

Rajoy has pushed through waves of austerity-driven, unpopular tax hikes and government program cutbacks since taking office in 2011, to reduce Spain's budget deficit.

By The Associated Press

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