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A tax deduction, or "write off" as it's sometimes called, reduces your taxable income by getting you to subtract the length of an expense from your income, before calculating the amount tax you'll need to pay. Within the deductions anyone could have or the greater the deductions, over the your taxable income. Also, much better you reduce your taxable income the less exposure you will likely need to the higher tax rates in improved income mounting brackets. As you read earlier, Canada's tax system is progressive signifies the more you earn, the higher the tax rate. Losing taxable income cuts down the amount of tax you'll pay.

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