Final answer:
Most domestic matters are indeed addressed at the federal, state, and local levels. Each level has specific roles and responsibilities with some overlap, reflecting the principles of federalism. Changes in federal spending and the composition of federal revenue highlight the dynamic nature of domestic policy. The statement in the question is true.
Step-by-step explanation:
Most domestic matters are indeed addressed at multiple levels of government. In the United States, this refers typically to federal, state, and often, local levels. Each layer has its specific roles and responsibilities, often outlined by the constitution and federal laws.
For instance, matters such as education, transportation, and public safety are primarily the responsibility of state and local governments, whereas the federal government is primarily responsible for national defense, foreign policy, and interstate commerce. However, there is considerable overlap, and many domestic issues are addressed collaboratively among the different levels. This concept is part of the foundation of federalism where power is divided between the national government and the state governments.
Moreover, federal spending has indeed grown substantially in recent decades in areas such as healthcare and social security, while foreign aid, despite common beliefs, constitutes a relatively small portion of the federal budget. Regarding taxation, personal income taxes do make up the majority of federal revenue.