A degressive tax, commonly known as a regressive tax, is a taxation system in which the tax rate decreases as the taxable amount increases. This means that those who earn less money will pay a higher percentage of their income in taxes compared to those who earn more. Another term for degressive tax is flat tax, which means that everyone pays the same percentage regardless of income level. Other synonyms for degressive tax include inverse tax, diminishing tax, and proportional tax. While proponents of degressive tax argue that it encourages people to work harder and earn more money, critics argue that it further widens the income gap between the rich and poor.