That's what's done in Australia. I'm not sure of the specifics of how the tax money is doled out, but all my income tax and sales tax goes to the federal gover

That's what's done in Australia. I'm not sure of the specifics of how the tax money is doled out, but all my income tax and sales tax goes to the federal government, which then divvies it out to the states. There are additional taxes in some states though, which are collected by the states, such as payroll tax, but I don't see that on my payslip.