Which tax system requires higher-income taxpayers to have lower tax rates, even though they pay a larger amount of tax when compared to lower-income taxpayers?

A) A proportional tax
B) A progressive tax
C) A regressive tax
D) A lump-sum tax

Proportional Tax

A tax system where the rate remains constant regardless of the amount to which the tax base is applied.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount or income increases, placing a higher burden on wealthier individuals.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.