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1. Florence created the first income tax, complete with personal exemptions and dodges.
2. The personal exemption was nearly doubled to $ 2, 000 in 1989 and then indexed for inflation.
3. Each individual in a household is also allowed a personal exemption of $ 2000.
4. For example, a married couple with two dependents would be permitted an $ 8000 personal exemption.
5. Bracket widths, personal exemptions, the standard deduction, and earned income credit are now indexed against inflation.
6. There are two types of exemptions: personal exemptions and exemptions for dependents.
7. Also affected are the income limits for phasing out benefits of personal exemptions and certain itemized deductions.
8. And he would reduce the value of their itemized deductions and personal exemptions.
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