Florida Civic Literacy Practice Exam

Which of the following is a shared power in the federal system?

1. Conducting foreign affairs

2. Collecting taxes

3. Regulating interstate commerce

4. Issuing currency

The correct answer is: Collecting taxes

The ability to collect taxes is considered a shared power in the federal system because both the federal government and state governments have the authority to impose and collect taxes. This power is outlined in the U.S. Constitution, which explicitly allows Congress to levy taxes while also permitting states to generate their own revenue through taxation. The sharing of this power is essential for the functioning of both levels of government, as it enables them to fund their respective operations and services. In contrast, conducting foreign affairs is primarily a power reserved for the federal government, as outlined in the Constitution, which designates the President and Congress with these responsibilities. Regulating interstate commerce is also a power predominantly held by the federal government to ensure consistency and fairness across state lines. Issuing currency, like conducting foreign affairs, is solely managed by the federal government to maintain a stable national economy and monetary system. Therefore, collecting taxes stands out as a shared responsibility under the federal system.