tax-saving

Vocabulary Word

Definition

'Tax-saving' is about effective strategies or investments used to reduce the amount of taxes one has to pay. These can be certain investments, expenditures, or decisions that you make to lower your taxable income.

Examples in Different Contexts

For retirement planning, 'tax-saving' methods can maximize retirement savings. A retirement advisor might suggest, 'Contributing to an IRA is an effective tax-saving strategy that can lower your taxable income.'

Practice Scenarios

Public-Policy

Scenario:

We want to encourage more people to adopt green technology. Let's discuss possible incentives to make it more attractive.

Response:

Implementing tax-saving schemes could indeed incentivize more people to opt for green energy options.

Personal-Finance

Scenario:

Considering your income bracket and investment goals, we need to plan how to maximize your returns.

Response:

Then, incorporating tax-saving investments into our strategy could potentially multiply my returns.