Final answer:
The power to tax differs between the federal and state/local governments in terms of structure, purpose, and revenue use. Federal taxes typically range from 17% to 20% of GDP and fund national programs, whereas state/local taxes differ and support services like education and public safety.
Step-by-step explanation:
The power to tax under different forms of government varies based on the level of government -- federal, state, or local. Federal taxes are collected by the national government and generally remain within the range of 17% to 20% of GDP. These taxes fund federal activities such as defense, welfare programs, and national infrastructure. On the other hand, state and local taxes fund services and infrastructure more closely connected with daily life, such as education systems, police, fire departments, and road maintenance. For example, property taxes are usually collected by local governments based on the value of real estate, and are used to fund local services. Meanwhile, many state governments impose state income taxes and rely on sales tax, which is collected during consumer purchases of goods and services.
Besides taxation, both national and state governments hold the power to establish courts, enforce laws, build roads, provide education, and manage borrowing and expenditure. This dual system of authority means citizens are subject to both federal and state laws concurrently. In conclusion, while both federal and state/local governments can impose taxes, the structure, purpose, and use of the collected revenue can vary significantly between the different levels of government.