Final answer:
Moving into a higher tax bracket refers to a concept in the US income tax code where as a person's income rises above certain levels, the tax rate on the additional income earned increases. This means that individuals with higher incomes will pay a higher percentage of their income in taxes.
Step-by-step explanation:
The concept that refers to a higher tax bill, higher effective tax rate, and higher tax expense is known as moving into a higher tax bracket. In the United States, the income tax code is designed so that as a person's income rises above certain levels, the tax rate on the additional income earned also increases. This means that individuals with higher incomes will pay a higher percentage of their income in taxes.
For example, let's consider the tax brackets for a single person in 2017. This person would owe 10% of all taxable income from $0 to $9,325, 15% of all income from $9,326 to $37,950, 25% of all taxable income from $37,951 to $91,900, and so on. As their income increases, they would move into higher tax brackets and their tax bill, effective tax rate, and tax expense would all increase.
It's important to note that moving into a higher tax bracket does not mean that all of the individual's income is taxed at the higher rate. Only the income that falls within the higher tax bracket is subject to the higher rate. The preceding income is taxed at the lower rates applicable to the lower tax brackets.