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Peter addresses a common misconception about US tax brackets: many people mistakenly believe that moving into a higher tax bracket means all their income will be taxed at a higher rate, causing them to lose money. Peter explains the two types of deductions and how the progressive tax system works, emphasizing the importance of understanding marginal tax rates and their impact on your income. Because tax brackets could change over time, it’s essential to understand how thresholds could change in the future. Using this information, you can better strategize your tax planning, whether it be contributing to Roth IRAs, pre-tax 401ks, or HSAs. ================ We help high-income earners capitalize on their accomplishments with pragmatic, data-driven financial advice. Learn more about Bull Oak → bulloak.com 🔔 Subscribe to be notified of future videos: / @financialplanner Timestamps: 0:00 - Itemized or standard deduction 1:00 - Progressive tax system 2:30 - Marginal rate 3:45 - Things to remember