Federalism is a system of shared sovereignty between two levels of government. Initially, in the United States, federalism referred to a stronger national government, however the meaning of the term has evolved over the year.
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All this means us power is shared between the central (national) government and the states.
collecting taxes
between the national government and the states
That is true. It is called dual.Dual federalism
Yes, federalism is a vertical division of power. Federalism states that power is shared by the federal and state government. Vertical divisions of power divide power between levels of government, such as the states and the federal government.