A tax system is a structured way for governments to collect money from individuals and businesses to fund public services and infrastructure. Taxes can be levied on income, property, sales, and various other activities. The collected funds are used for essential services like education, healthcare, and transportation. There are different types of tax systems, including progressive, regressive, and proportional taxes. In a progressive tax 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 tax system charges the same percentage regardless of income level.