Furthermore, people who have assets like stocks or funds in taxable accounts can sell low and deduct any capital loss, a practice known as tax-loss selling.
For children's education, a total of 2,000 yuan will be deducted every month from the taxable income of parents for each child, doubling the present level.
Starting January 1, the individual taxable income of such parents can be reduced by a total of 1,000 yuan ($157) per month for each baby, said the circular.
And remember you have to pay tax on your income. By contributing part of your income to a retirement account, there's less income that's taxable with each paycheck.
By turning more to debt instead of equity markets for financing, for instance, they could increase their interest expenses, which would eat into both their book and taxable incomes.