A tax system in which the rich pay a higher percentage of income as tax than the poor is known as

A.

Capital gains tax

B.

Progressive taxation

C.

Proportional taxation

D.

Regressive taxation

E.

Sales tax

Correct answer is B

A progressive tax is a tax system that increases rates as the taxable income goes up.

Progressive taxation means higher tax rates for those with higher income or more wealth so that those who earn or have more are taxed at a higher rate.