The U.S. Federal and State Governments are similar because both levels of government have the power to collect taxes from citizens. States do not have the power to declare war on other nations, nor print currency or control banks. Businesses within certain states can trade with foreign countries, but states do not control trade policy for these businesses.
They have the power to collect taxes from citizens.
The U.S. federal and state governments share certain powers, known as concurrent powers, which include the authority to collect taxes and control banks. This allows both levels of government to operate independently within their jurisdictions to fund programs and regulate financial institutions. Understanding this shared power system is essential for recognizing how federalism functions in the United States.
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