The American Tax System and its Effect on National Economy

The federal, state and local governments constitute the administrative structure of the United States. At the foundation of the nation, the administrative power was mainly concentrated at the state and local level, but the authority of the federal government had strengthened over the 30-year period since the First World War. The US fiscal system, similarly divided into federal, state and local levels, centralized along with the federal government. While the state and local still retain their own budgets and relatively independent financial rights, the central government holds most legislative power.