September 18, 2009
San Francisco Chronicle Quotes Tax Foundation Senior Economist Gerald Prante on Predictions for 2010 Tax Parameters
"As inflation fades, so does its silver lining"
By Kathleen Pender
Nobody likes inflation, until it's gone.
For the first time since the Internal Revenue Service started indexing federal taxes for inflation in the mid-1980s, taxpayers will get virtually no benefit from inflation in 2010. ...
According to the IRS method, the basic inflation factor for 2010 will be 0.19, the smallest increase since the IRS started indexing in 1985, according to a report by the Tax Foundation. The next-lowest was 1.59 percent for tax year 2003. ...
"For the first time, the personal exemption will not go up," says Gerald Prante, an economist with the Tax Foundation. The exemption, which reduces taxes, will remain at $3,650, the same as this year. The standard deduction will stay the same for everyone except head-of-household filers, who will get a $50 boost.
