How are the taxes levied?

Taxes are levied by governments at various levels—federal, state, and local—through legislation that determines the types and rates of taxes imposed on individuals and businesses. Common forms include income tax, sales tax, property tax, and corporate tax. The specific mechanism for collection varies, with some taxes deducted directly from wages while others are paid through invoices or annual returns. Tax policies are designed to generate revenue for public services, infrastructure, and social programs.