>Most countries have some kind of local or regional taxes, and the single tax authority is responsible for collecting and distributing them all.

Most states operate this way. Counties will often collect city taxes, and in some states the state will collect the city and county taxes. There are obviously exceptions but within states there's a lot more cooperation than you might think

And most individuals are not paying income taxes to cities or counties, they're paying property taxes and that is typically automatically handled via their mortgage company