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Greater deductions you have or the greater the deductions, decreased your taxable income. Also, the more you eliminate taxable income the less exposure you will likely need to the higher tax rates in the more income mounting brackets. As you read earlier, Canada’s tax system is progressive hence you the more you earn, the higher the tax rate. Lowering your taxable income minimizes the amount of tax payable. There is, of course, a in order to both of which problems.
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