What is a power shared by both the federal and state governments?

Taxation is a power shared by both the federal and state governments, reflecting the principles of federalism that allow for multiple levels of government to operate simultaneously within their respective spheres of authority. Both levels of government require revenue to function and provide services to their constituents; therefore, they both have the ability to levy taxes.

The federal government can impose various types of taxes, such as income tax and corporate tax, while state governments can impose sales tax, property tax, and income tax as well. This dual capacity enables a cooperative interaction in financing public services and infrastructure between the two levels, facilitating efficient governance.

In contrast, regulating interstate commerce is primarily a federal power, as established by the Commerce Clause in the U.S. Constitution, while issuing currency is exclusively a federal authority under the Constitution. Creating an army is also a federal responsibility, as the Constitution grants Congress the authority to raise and support armies. Therefore, taxation is unique in being a power exercised by both federal and state governments, emphasizing their shared roles in governance.