Final answer:
All bills raising revenue must originate in the House of Representatives, with the Senate having the power to amend these bills. Federal and state governments collect various taxes and fees to finance their activities.
Step-by-step explanation:
According to the United States Constitution, specifically Article I, Section 7, all bills for raising revenue must originate in the House of Representatives. This foundational rule emphasizes the role of the House in initiating tax legislation, although the Senate has the ability to propose or concur with amendments on these revenue bills. Over the years, both federal and state governments have diversified their revenue sources, including income taxes, sales taxes, property taxes, and other fees to fund their annual expenditures.