Question 14 • Personal Finance
Federal income tax is progressive: different portions of income are taxed at different rates. The first $9,075 is taxed at 10%, and Phung’s income reaches the 10%, 15%, 25%, and 28% brackets, so A and C are correct. The largest increase between those rates is from 15% to 25%, which occurs after the roughly $36,000 threshold described in B. The 28% rate applies only to a portion of her income, not all of it, and Florida has no state individual income tax, so D and E are incorrect.
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