I'm a Roots of Progress fellow, and I've been researching the interplay between large governments (like the US or the EU) and more local governments (like states or EU countries). The 10th Amendment gives states lots of power to self-govern, but not the money to do it. I'm curious why states receive such a small percentage of tax revenue if the intention was for us to manage our own communities locally? Does anyone have any good sources on our tax structures and how they are meant to support local vs. federal governments?

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US tax policy changed during the WWI era. It was all quite local until 1917. https://taxfoundation.org/data/all/federal/historical-income-tax-rates-brackets/ Also, you'll notice that even at the state level, income tax was rare. Income tax has historically been ill-regarded. Until 1905 most of the state of New York was funded through alcohol taxes: https://www.jstor.org/stable/1882558 They then passed a mortgage tax and a stock tax to counter the rising costs of a growing population.

Every government level has the power to tax in the US, and they all find very different ways to do it.