U.S. Eases Panama Curbs
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WASHINGTON — U.S. government agencies and private firms operating in Panama will be allowed to pay social security payroll taxes to the Panamanian government for their Panamanian employees, the State Department said today.
Department spokesman Charles E. Redman described the decision as a “humanitarian” exemption to an April order by President Reagan halting all payments to the Panamanian government by American citizens. Another official said the exemption will provide about $3 million a month to the Panamanian government. The taxes are used to provide health care to Panamanian workers and their families.
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