TheStreet’s J.D. Durkin brings you the biggest news of the day, including how the market fared and what you need to know about the new 2024 tax brackets.
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00:00 I'm JD Durkin reporting from the floor of the New York Stock Exchange.
00:03 Stocks were in the red to close out the day's session, snapping their eight-day winning
00:07 streak, the Dow closing down over 200 points, the Nasdaq down just under 1%, while the S&P
00:13 500 closed 0.8% lower.
00:16 This comes as markets continue to react to comments from Federal Reserve Chairman Jerome
00:20 Powell.
00:21 He reiterated that more work would need to be done to bring inflation down to the 2%
00:26 threshold, meaning higher for longer interest rates.
00:30 Currently, inflation sits at 3.7%, but it wasn't all doom and gloom on the day.
00:35 Powell did say the U.S. Central Bank has been encouraged by the recent slowdown in economic
00:40 activity.
00:41 Meanwhile, the IRS has introduced new thresholds for each of the seven tax brackets, as well
00:46 as standard deductions.
00:48 Beginning in 2024, each bracket will increase by about 5.4% for both those filing separately
00:55 or as married couples.
00:56 The increase comes a year after the IRS expanded its tax brackets by a historically large inflation
01:02 adjustment of 7%.
01:05 Set in 2017 by the Tax Cuts and Jobs Act, the seven federal income tax rates are 10,
01:11 12, 22, 24, 32, 35, and 37%.
01:17 For 2024, the 37% top rate will apply to single filers with taxable income above $609,300.
01:24 And to joint filers who earn $731,200.
01:31 Also the standard deduction will see an increase.
01:33 As a reminder, that's the specific dollar amount that reduces the amount of taxable
01:38 income.
01:39 The standard deduction for joint filers next year will rise to $29,200.
01:44 And single filers may claim $14,600.
01:46 That'll do it for your daily briefing.
01:50 From the floor of the New York Stock Exchange, I'm JD Durkin with the Street.
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