Final answer:
Ordinary income is taxed at the highest rates according to progressive tax rate schedules, unlike qualified dividends or long-term capital gains, which are usually taxed at lower rates. Tax-exempt interest should not be subject to federal income tax.
Step-by-step explanation:
The types of income that may be taxed at rates higher than the standard tax rate schedules are not qualified dividends or long-term capital gains, as these are usually taxed at lower rates. Instead, ordinary income is typically taxed at the highest rates according to the progressive tax rate schedules provided by the tax code. Tax-exempt interest, as the name implies, should not be subject to federal income tax at all. Estate and gift taxes are levied on assets passed to the next generation, and do not apply in this context. It's important to note that while corporate income tax is imposed on corporate profits, it does not directly affect the individual's tax rate on personal income.
To clarify, qualified dividends and long-term capital gains benefit from lower tax rates, while ordinary income is subject to the standard tax brackets, which can be higher. Tax-exempt interest is generally not taxed. The aforementioned discussion on corporate income tax, crowding out, discretionary fiscal policy, estate and gift tax all relate to different aspects of taxation and government policy, but do not directly answer the question at hand.