 Our Country and economy is in such a state these days. It is hard not to feel like the lovable Winnie-the-Pooh character, Eeyore...pessimistic and gloomy... and with the feeling that we are being followed around by a rain cloud.
One bit of good news is the IRS's 2012 cost-of-living adjustments are a little more significant than in the recent years. With inflation now a little higher than it has been, some amounts that haven’t risen in recent years are increasing for 2012 and others are increasing by larger sums.
The tax-bracket thresholds increased for each filing status but especially for the higher brackets. For example, the top of the 10% bracket increases by $200 to $400, depending on filing status, but the top of the 33% bracket increases by $9,200 ($4,600 for married couples filing separately). This should reduce the risk that slightly higher earnings in 2012 could push you into a higher tax bracket.
The personal and dependency exemption increases to $3800 while the standard deduction amounts increased to the following levels:
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Married Individuals Filing Joint Returns and Surviving Spouses
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$11,900
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Heads of Households
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$8,700
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Unmarried Individuals (other than Surviving Spouses and Heads of Households)
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$5,950
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Married Individuals Filing Separate Returns
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$5,950
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Other adjustments that are worth noting are the Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans increased from $16,500 to $17,000 and the standard mileage rate for business use of an automobile which was increased effective 7/1/2011 stayed at the 55 1/2 cents per mile.
With the upcoming election in November 2012, we have a change to do our part by being interested and involved in the direction the country is going as well as an opportunity for Congress to listen to the people to make the right changes to get our economy back on track. Hopefully in the near future, we can use the words of Eeyore to tell Congress "Thanks for noticin' me". | 
