Federalism & the Tax System USA

One important aspect of tax policy is that the optimal provisions for one type of tax will often depend on the way in which other taxes are levied. A tax should be efficient and equitable when analyzed on its own, but often the efficiency and equity of a tax depend upon how it fits in with the whole system of taxes. So, taxes must be viewed as individual components of an overall tax system to really understand their effects.
The United States has a federal system of government, and, followings that model, the tax system can be divided into the three major categories of federal, state, and local taxes. Federal, taxes make up