A country redesigned its tax policy so that the tax rate was reduced for individuals earning larger amounts of money. For example, a household making $50,000 a year would pay 23 percent in taxes while a household making $200,000 would pay 23 percent taxes only on the first $150,000 of their income and no taxes on the income above $150,000. This is called

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Regressive taxation is a tax system where the tax rate decreases as the taxable amount increases, meaning individuals with higher incomes pay a smaller percentage of their income in taxes compared to those with lower incomes. The described policy, where higher earners pay a lower effective tax rate on portions of their income, fits this definition.

A Country Redesigned Its Tax Policy So That the Tax