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i might be wrong but if it's a tax deduction, doesn't that just reduce his tax liability by some percentage of the $800, so more like 20-30% depending upon his
by dlhavema 13y ago
i might be wrong but if it's a tax deduction, doesn't that just reduce his tax liability by some percentage of the $800, so more like 20-30% depending upon his tax bracket? That way the $800 is only worth maybe $200 - $300.. A tax credit would be a full dollar for dollar comparison.
- Lagged2Death 13y agoYou're quite right. Very common error, unfortunately.
- PeterisP 13y agoThe article seems to state that he got $800 deduction out of the $3k pudding purchase - which matches that 20-30% expectation.