What is one way in which local governments are similar to federal governments?

The Federal government and the State government both collect taxes, and both create and enforce laws. Both have three branches of government the Executive, Legislative and Judicial Branches. For more information, please review the US Constitution, Articles I, Article II and Article III

pls be more elaborate

the answer is: must pay taxes on profits

since it is considered as a part of your income, profits from investments is eligible for tax payment.

the tax from your investment could be influenced by how long you decided to sell it. united states promotes keeping your investment for long term period. so, the tax rate for investments that you sell in less than one year is typically higher compared to investments that you sell in more than one year period.