What type of tax requires a larger fraction of income as income increases?

The correct choice is a progressive tax because this type of tax structure is designed so that individuals with higher incomes pay a larger percentage of their income compared to those with lower incomes. As a person's income increases, they move into higher tax brackets, meaning that not only does their overall tax burden increase, but the rate at which they are taxed also increases. This system aims to reduce income inequality by placing a higher tax burden on those who have the greatest ability to pay.

In contrast, regressive taxes tend to take a larger percentage from lower-income individuals than from those with higher incomes, thereby placing more financial strain on those who are less able to afford it. Proportional taxes, on the other hand, require all taxpayers to pay the same percentage of their income, regardless of how much they earn. Fixed taxes remain constant and do not vary with income, which means they can disproportionately affect lower-income earners.