Answer:

Here is a ladder diagram illustrating the evolution of taxation:

1. Ancient and Early Societies:

- Barter System: In ancient times, people primarily engaged in barter trade, exchanging goods and services directly without the use of currency or taxation.

- Tribute: Rulers and empires would demand tribute or payment from conquered territories as a form of taxation.

2. Early Civilizations:

- Poll Taxes: Early civilizations began implementing poll taxes, where each individual had to pay a fixed amount to the ruling authority.

- Property Taxes: As societies became more organized, property taxes were introduced, where individuals paid a percentage of their property's value to the ruling authority.

3. Feudal Systems:

- Feudal Dues: Feudal systems introduced various forms of dues and obligations, where peasants paid rent or provided services to the lords or landowners in exchange for protection and land usage.

4. Emergence of Modern States:

- Tariffs: With the rise of international trade, tariffs were imposed on imported goods as a means of generating revenue for the state.

- Excise Taxes: Excise taxes were introduced on specific goods such as alcohol, tobacco, and luxury items, serving both as a revenue source and a method of regulation.

5. Early Modern Era:

- Income Taxes: In the late 18th and early 19th centuries, income taxes were introduced in some countries as a means to finance wars and other government expenses.

- Progressive Taxation: Progressive taxation, where individuals with higher incomes pay a higher percentage of tax, emerged in the early 20th century as a means to achieve a fairer distribution of the tax burden.

6. Modern Tax Systems:

- Value Added Tax (VAT): VAT, a consumption-based tax, was introduced in many countries to generate revenue based on the value added at each stage of production and distribution.

- Corporate Taxes: Governments levy taxes on corporate profits to generate revenue from businesses operating within their jurisdictions.

- Wealth Taxes: Some countries implement wealth taxes, where individuals are taxed based on their net worth or assets.

It's important to note that the evolution of taxation is complex and varies across different regions and time periods. The above ladder diagram provides a general overview of the key milestones in the development of taxation systems.