Basis of taxation

The power of taxation proceeds upon the theory that the existence of government is a necessity; that it cannot continue without means to pay its expenses; and that for those means it has the right to compel all citizens and property within its limits to contribute.

The collection of taxes provides funding to support the infrastructure of government, which allows for the delivery of public services to individual states and the nation as a whole.

The basis of taxation is found in the reciprocal duties of protection and support between the State and its inhabitants. The State receives taxes that it may be enabled to carry its mandates into effect and perform the functions of government and the citizen pays the portion of taxes demanded in order that he may, by means thereof, be secured in the enjoyment of the benefits of an organized society, (see 51 Am. Jur. 42-43.) This is the so-called benefits-received principle.