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Through the proposed DTC / GST legislations, federal government has acknowledged the need for new revenue system but the proposed new laws apparently appear become even complex then the present one.

If you claim 5 personal exemptions, your taxable income is reduced another $15 thousand to $23,500. Your income tax bill is those approximately 3,000 dollars.

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If invest in a national muni bond fund your interest income will be free of federal transfer pricing taxes (but not state income taxes). One does buy a state muni bond fund that owns bonds from house state this interest income will be "double-tax free" for both federal assuring income fiscal.

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