Which statement accurately describes a tax bracket?

A tax bracket is defined as a range of income levels that are taxed at specific rates. This concept is integral to understanding how the progressive tax system works in which different portions of a taxpayer's income are taxed at varying rates.

For example, in a progressive tax system, an individual may pay a lower rate on the initial segment of their income and increasingly higher rates on additional earnings that fall within higher brackets. This structure is designed to ensure that taxpayers contribute a fair share relative to their ability to pay, with those earning more facing higher rates on their excess income.

This is distinct from the other concepts mentioned in the remaining options. The notion of a percentage of all income earned does not capture the idea of brackets but rather suggests a flat tax rate. Similarly, a fixed amount due for income over a certain level does not align with how tax brackets operate since it suggests a set fee rather than a graduated structure based on ranges. Lastly, while adjustments made for inflation are important for tax purposes, they do not define what a tax bracket is. Thus, the description of a tax bracket as a range of income levels taxed at different rates accurately reflects how the tax system applies varying rates to different income segments.