Final answer:
Revenue sharing involves the federal government distributing a portion of its collected taxes to state and local governments, which is the opposite of the initial statement in the question.
Step-by-step explanation:
The statement about revenue sharing is false. Revenue sharing generally refers to the system in which federal taxes are collected by the federal government and a portion of those funds is distributed to state and local governments. This is quite the opposite of collecting taxes at the local level and distributing them at the federal level.
State and local governments collect their own taxes and may receive additional funds from the federal government in the form of intergovernmental revenues, which account for a significant portion of their budgets, and is used to support various public expenditures like welfare, healthcare, and education. While federal revenues are largely collected from income taxes, state and local revenues often include sales taxes, property taxes, and taxes from other sources.