Although taxes make up close to half of state revenue, the states and the federal government receive funding through state-run businesses, licences, and fees for road building, school operations, and military support.
The American system of governance is based on the principle of federalism. Both the federal and state governments have independent jurisdiction over citizens. The federal government has some sort of influence over all 50 states. The power to enact legislation within a state's boundaries belongs to the state governments.
All state governments have a three-branch organisation that is modelled after the federal government, with the executive, legislative, and judicial branches. The United States Constitution mandates that all States retain a "republican form" of government, even though the three-branch system is not necessary.
The federal government and state governments jointly share concurrent powers. This includes the power to build roads, levy taxes, and appoint subpar judges.
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