A tax system is a framework that governments use to collect revenue from individuals and businesses. It typically includes various types of taxes, such as income tax, sales tax, and property tax. The collected funds are used to finance public services like education, healthcare, and infrastructure. There are different types of tax systems, including progressive, regressive, and proportional systems. In a progressive system, higher earners pay a larger percentage of their income in taxes, while a regressive system places a heavier burden on lower-income individuals. A proportional system, on the other hand, charges the same tax rate regardless of income level.