A taxation system is a framework through which a government collects money from individuals and businesses to fund public services and infrastructure. This system typically includes various types of taxes, such as income tax, sales tax, and property tax, each serving different purposes and affecting taxpayers in different ways. Governments use the revenue generated from taxes to provide essential services like education, healthcare, and transportation. The taxation system is designed to ensure that everyone contributes fairly based on their ability to pay, which helps maintain social equity and supports economic stability within a society.