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Tax brackets are a fundamental component of progressive tax systems, where income tax rates increase as an individual’s income rises. Each bracket corresponds to a specific range of income, with a designated tax rate applied to income within that range. As income increases and surpasses a bracket threshold, only the portion of income exceeding the threshold is taxed at the higher rate. This system aims to ensure equitable taxation, where those with higher incomes contribute a larger percentage of their earnings to public finances.