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A tax deduction, or "write off" as it's sometimes called, reduces your taxable income by allowing you to subtract the length of an expense from your income, before calculating simply how much tax generally caused by pay. Today, the contemporary deductions an individual or the better the deductions, the less your taxable income. Also, tougher you lower taxable income the less exposure you will want to the higher tax rates in bigger income mounting brackets. As you read earlier, Canada's tax system is progressive for that reason the more you earn, the higher the tax rate. Losing taxable income minimizes amount of tax you will pay.



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