here's how it works:
the feds tax people a bunch
then the feds tell the states if they want federal assistance (being, the tax money already taken from the people), they have to play by the feds rules.
in this way, the feds can reach things they otherwise couldn't, such as making sure that every school lunch is sold with milk, regardless of whether the kid wants milk, takes the milk, or if milk is even good for kids at all.
Yes, federal, state, and local taxes all exist.
