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 law that imposes a new sales tax on all goods and services. Which type of power is the state legislature exercising in this scenario?
- ADelegated power
- BExclusive power
- CImplied power
- DConcurrent power
Show answer & explanationAnswer & explanation
Correct answer: D. Concurrent power
The power to tax is held by both the federal government and state governments, making it a concurrent power. States can impose sales taxes, while the federal government imposes income taxes, for example.
Why the other options are wrong
- A. Delegated powers are those specifically granted to the federal government.
- B. Exclusive powers are held solely by the federal government and not shared with states.
- C. Implied powers are those not explicitly stated but necessary for the federal government to carry out its delegated powers.
Concurrent Powers
Powers that are shared by both the federal government and state governments in a federal system.
- Examples include the power to tax, build roads, establish courts, and enforce laws.
- These powers are not exclusive to either level of government.
- They illustrate the overlapping responsibilities within a federal system.
Memory trick: Concurrent means 'shared' powers.