Taxation is the system by which governments collect money from citizens and businesses to pay for public services. When you buy something at a store and see “sales tax” added to your receipt, or when your parents pay property taxes on your house, that's taxation in action.

Governments use tax money to build roads, run schools, pay police officers and firefighters, maintain parks, and provide countless other services that communities need. Without taxation, there would be no public libraries, no streetlights, and no one to plow snow off the highways in winter.

Different types of taxes work in different ways: income taxes take a percentage of what people earn, sales taxes add a bit to each purchase, and property taxes charge homeowners based on what their property is worth.

Throughout history, taxation has been controversial. The American Revolution started partly because colonists believed “taxation without representation” was unfair: they were being taxed by a British government in which they had no voice. Today, citizens in democracies elect representatives who decide how much to tax and how to spend that money. While nobody enjoys paying taxes, most people recognize that taxation makes it possible for communities to function and provide services that benefit everyone.