What is the range of Ordinary Income tax rates for individuals?

Prepare for the Tax Knowledge Assessment. Utilize flashcards and multiple-choice questions; detailed hints and explanations accompany each question. Excel on your exam!

The range of Ordinary Income tax rates for individuals is 10% to 37%. This range reflects the United States federal income tax system, which is progressive in nature. This means that as an individual's income increases, so does the rate at which their income is taxed. The lowest rate starts at 10% for low-income earners and progressively increases to 37% for those with the highest income levels. This structure is designed to equitably distribute the tax burden, ensuring that higher earners pay a larger percentage of their income in taxes compared to lower earners.

The other options provide ranges that do not encompass the entire spectrum of Ordinary Income tax rates or fall below the minimum or above the maximum applicable rates. Hence, they do not accurately represent the federal tax brackets as defined by the IRS.

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