The American Republic is to be considered a nation, rather than an alliance. Much like the United States, and how it contains a Federal government and State and local government. The American Republic was devised by PresRichards1776, in a hope to uniting many PixelNations who share the same ideas. States rule in favor of their own local government (example would be if you are Socialist, Communist, Fascist, etc). This shows in favor of States rights. Though as far as State taxation goes within their own sovereign State, is solely up to them and how they govern.
Though their are a few rules. Being in the diverse American Republic, you cannot declare war on an indepenent nation, or an alliance. Wars are proposed by either States, Cabinet members, and the President. Votes start with States. States have to have a certain amount of votes for a "pass". Once passed on the State level, it goes to the Cabinet members with a specific number of passes. It will then pass on to the President for final approval once it is passed in the Cabinet. It is required for States to have a good military defense of no less than 20,000 troops. 10,000 is paid for by The American Republic, and 10,000 troops are State paid and considered militias. This is where taxation come into play. Taxation to be increased or decreased (national) or increased is propsed by a State, Cabinet, Department of Treasury, or the President. Whatever tac percentage is proposed, must be passed by the States, Cabinet, and final approval by the President. Tax percentages cannot go over 8% in taxation. Tax raises and decreases are proposed in a GoogleDoc. These will be considered "bills". To propose a bill (whether it passes or not), a State, Cabinet member, or President must pay a specific amount to The American Republic. Each bill is $500,000, which will be paid into the nations treasury. Such as declaring war, lowering or raising taxes, increased military spending, etc. These are done in bills, and GoogleDoc is a great way to know who voted "aye" or "nay", and those who abstained from the vote (economic, development of a State, and stimulus could be examples of what people can do).
There are only three departments in The American Republic. The State Department, Department of Resources, and the Department of War. The State Department appoints new states into the Union, or recruits other nations to be a part of the country. Department of Resources manages all the warehouse resources within the The American Republic. The Department of War gathers intelligence, manages war tactics, and funding to help the cause of war in case we are attacked. The idea of The American Republic is free trade. A State can trade with another nation without any approval or bill. But to help States establish trade agreements, there is a Department of International Commerce, which will help us gain allies and friendly associations through free trade, and increase GDP.
This idea may sounds far fetched at first. But it is suppose to bring more realism into the world. This would not be proposed if it was known it wouldn't work. But it can work. Passing bills is a way of implementing other ideas that would help or benefit with the appoval of everyone else. Taxation is chosen by people, not one individual person. International and State commerce are not regulated, but TAR (The American Republic) wants to help produce GDP for the States, and the nation itself.