Final answer:
A progressive tax takes a larger percentage from higher income earners and a smaller percentage from lower-income earners. This system scales with income, as opposed to regressive or proportional tax systems.
Step-by-step explanation:
The type of tax that takes a larger percentage from higher income earners and a smaller percentage from those who earn less is a progressive tax. This system employs a sliding scale of tax rates, meaning that as a person's income increases, so does the percentage of their income that they owe in taxes. By contrast, in a regressive tax system, lower-income earners may pay a higher proportion of their income compared to high earners, as seen with excise taxes on certain goods like alcohol and tobacco. Whereas a proportional tax, often referred to as a flat tax, applies the same tax rate to all income levels, thereby affecting low-income earners more significantly in terms of their spending power.