How are tax brackets typically structured?

Tax brackets are typically structured in a progressive manner based on income levels. This means that individuals pay a higher percentage in taxes as their income increases. In a progressive tax system, income is divided into segments, with each segment being taxed at a different rate. For example, the first portion of income might be taxed at a lower rate, while higher portions of income are taxed at gradually increasing rates.

This approach aims to ensure that individuals with higher earnings contribute a greater proportion of their income to taxes, thereby promoting equity within the taxation system. It reflects the principle that those with greater financial resources can afford to pay more in taxes, which can help fund public services and programs.

The other options don't accurately depict how personal income taxes are structured. A fixed tax rate would mean that every individual, regardless of income, pays the same percentage, which does not account for the varying levels of income and ability to pay. Equal rates for all income brackets would also negate the benefits of a progressive system. Lastly, stating that tax brackets only apply to corporations is inaccurate, as individuals are also subject to these progressive tax rates.