I am not sure if I understand RRSP correctly.
Let's say I made $50,000 last year so my tax bracket will be 32%($16000, in Alberta). And I decide to put $8000 to RRSP to lower my tax bracket to the lowest. Then my income will be $42000 and I am supposed to pay 25%($10500). So that means I am getting $5500 tax return by putting $8000 RRSP?
Please let me know if I misunderstand something.