With the revenue that the states receive from the Federal Government, taxes, licenses, and fees, they provide public services to their citizens. The Federal Government also grants money to the 50 states. Today, the states acquire the necessary revenue to maintain their governments through tax collection, fees, and licenses. The states, however, retained the right to impose any type of tax except those taxes that are clearly forbidden by the United States Constitution and their own state constitution. When our Constitution was adopted, the Federal Government was granted the authority to impose taxes. The Federal Government has always recognized this right. Ever since the beginning of our history, the states have maintained the right to impose taxes.
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