Answer
The answer is Regressive tax
Problem Statement
The question asks us for the type of tax that has the property of decreasing the tax rate for higher tax amounts.
Method
To answer this question, we need a quick definition of each form of tax given in the option.
1. Progressive tax:
A progressive tax is a tax applied uniformly, taking a larger percentage of income from high-income earners than from low-income earners.
2. Regressive tax:
A Regressive tax is a tax applied uniformly, taking a higher percentage of income from low-income earners than from high-income earners.
3. Flat tax:
A flat tax system applies the same tax rate to every taxpayer regardless of their income bracket.
With the explanation given above, we can easily answer the question.
Implementation
The question says the tax rate decreases as the amount is higher. This corresponds to the definition of a Regressive tax
Final Answer
The answer is Regressive tax