GED Social Studies TestCivics and GovernmentMedium
A state is facing a severe budget crisis and needs to raise revenue quickly. The state legislature passes a new sales tax on certain goods. At the same time, the federal government also collects income taxes from citizens within that state. This ability for both the state and federal governments to levy taxes is an example of which type of power?
- AReserved Powers
- BConcurrent Powers
- CExclusive Powers
- DProhibited Powers
Show answer & explanationAnswer & explanation
Correct answer: B. Concurrent Powers
Concurrent powers are those that are shared by both the federal and state governments. The power to levy and collect taxes is a prime example, as both levels of government exercise this authority.
Why the other options are wrong
- A. Reserved powers are powers kept by the states, not the federal government.
- C. Exclusive powers are exercised only by the federal government.
- D. Prohibited powers are denied to either the federal government, state governments, or both.
Concurrent Powers
Concurrent powers are powers that are shared by both the federal government and state governments in the United States, allowing both levels to exercise authority in the same areas.
- Examples include the power to tax, build roads, and establish courts.
- Allows for flexibility in governance.
- Can sometimes lead to conflicts between state and federal law.
- Not explicitly listed as exclusive to either federal or state government.
Memory trick: Concurrent powers run concurrently at both levels.