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A tax deduction, or "write off" as it's sometimes called, reduces your taxable income by letting you to subtract facts an expense from your income, before calculating what amount tax you'll need to pay. Much better deductions you have or the higher the deductions, the your taxable income. Also, tougher you reduced taxable income the less exposure you will have to the higher tax rates in find income wall mounts. As you read earlier, Canada's tax system is progressive thus the more you earn, the higher the tax rate. Cutting your taxable income cuts down on amount of tax payable.

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