Nobody likes to pay taxes. And I think we all get a little kick out of finding ways to save on our tax bill. We smile when we find a deduction we’d been missing. Maybe we think it’s a great deal because we’re sticking it to the man. Maybe the tax deduction tricks us into thinking we’re getting a discount on buying something that we want. Or maybe the tax deduction leads us to believe we’re making a smart decision. I know I get a little tingle inside when I find a new tax deduction. Don’t you?
Are All Tax Deductions Good?
The problem is that saving on taxes usually amounts to spending cash, or worse, signing up for debt. That’s right, we’re all trying to get rich slowly, and it seems like saving taxes would go hand in hand with this, but when it comes down to it, many tax deductions are really a drain on our cash flow or emergency fund. Many tax deductions can increase risk and even can put us a little bit further behind the eight ball. All in the name of saving taxes.