Bloomberg Predicts Lower Effective Tax Rates in 2016

Bloomberg is predicting a lower effective tax rate in 2016 because of a drop in the consumer price index (CPI). The CPI measures the cost of goods and services. When the CPI doesn’t change much, it tends to signal that interest rates will stay put. For 2016, Bloomberg is projecting that the personal exemption amount will be $4,050, up from $4,000 in 2015. For high-income taxpayers, the personal exemption deduction is phased out. They are also projecting the federal estate tax exclusion will edge up slightly but the gift tax will remain unchanged.

Download the Bloomberg analysis of projected 2016 tax rates [PDF]

This news is important because inflation adjustments are now routinely included in new tax legislation which can be confusing for taxpayers. We can help you can sort out the shifting tax landscape and ensure you are receiving all credits and deductions which you are allowed to claim.

[gravityform id=”5″ title=”true” description=”false”]