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So long as their laws do not contradict national laws, state governments can prescribe policies on commerce, taxation, healthcare, education, and many other issues within their state. Notably, both the states and the federal government have the power to tax, make and enforce laws, charter banks, and borrow money. How State Governments Are Different--from the Federal Government and Each ... Because local governments are at the grassroots level, your local legislator ... be a member of your school's PTA, shop in the same supermarket, or even be your ...