IRS sets ‘inflation’ rate at 1.6%…

October 31, 2013
Sydney, Australia

Hot off the presses, the IRS just issued a notice of its annual inflation adjustments for the 2014 tax year.

According to the release, the inflation adjustment is 1.6%.

So now, for example, couples earning more than $457,600 will fall in the 39.6% marginal tax bracket, as opposed to $450,000 last year.

A single individual earning under $9,075 will fall in the 10% bracket, as opposed to $8,925 last year.

The increase always applies to individuals who expatriate; an individual will now be obliged to pay the exit tax upon renunciation if his/her average annual net income tax for the last five years exceeded $157,000 per year. This is also up slightly from last year.

The real question is, though, especially for anyone who has pumped gas, gone to a grocery store, paid university tuition and insurance premiums, etc., does the rate of inflation really feel like 1.6%?

About the author

James Hickman (aka Simon Black) is an international investor, entrepreneur, and founder of Sovereign Man. His free daily e-letter Notes from the Field is about using the experiences from his life and travels to help you achieve more freedom, make more money, keep more of it, and protect it all from bankrupt governments.

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