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Because within the increasing tax rate better brackets, a reduction of taxable income attending a higher bracket saves you more tax than exact reduction in a lower clump. So let's compare the tax saving of contributing $1000 by a single person with a $30,000 income with exactly what a single person with a $100,000.



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In fact, this column was inspired by any kind of York Times article that ran last week, arguing that generous tipping "is a technique that is guaranteed to no effect on your provider." (1) Then why does the person being tipped pay in taxes?

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