Low inflation means shallow increase in tax benefit thresholds

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The IRS has announced its annual cost-of-living and inflation adjustments for 2016, offering only a modest bump in the personal exemption, standard deduction, and lifetime gift and estate tax exclusion.

Tax laws require the IRS to adjust the dollar amounts of dozens of tax provisions each year to account for inflation. The tax brackets were adjusted with an approximate inflation rate of just 0.2%.