Give an example that shows the difference between a state and federal budget.

The federal government encompasses the country as a whole. The federal government gets the money it spends, mainly through taxation. Roughly 80% of revenue comes from the individual income tax and the payroll taxes that fund social insurance programs. Another 9% comes from the corporate income tax, and the rest is from a mix of sources. 

The state and local governments only encompass their own state, districts, counties, and cities, etc. For state and local governments, property taxes make up the largest category of revenue at thirty-five percent. Sales and gross receipts are a close second at thirty-four percent. The corporate income tax is the smallest at a mere three percent of the money taken in.

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