What is Federalism?
Federalism was created by the Founding Fathers in an effort to limit the power of the national government. In the Constitution specific powers were given to the national government while others were left over for the states. The local government was given jobs by the states to take care of local jobs. (See local section in chart). The federal government takes care of national issues such as travel, protection, etc and hands lesser issues to the state government. Due to this the state government handles the department of vehicles and laws individual to each state.
This link to an article has to do with taxes. Taxes is a duty that all branches of the Federal Government work on. There are local, state, and federal taxes. Local taxes include sales tax, car window stickers, and property taxes. State taxes include state income tax, some sales tax, and license plate stickers while federal taxes include federal income taxes.
This video explains into depth why we have Federalism and what the different branches of government control.