Final answer:
The quote "Taxes are what we pay for a civilized society" is attributed to Oliver Wendell Holmes. Taxes fund essential public services and infrastructure, and the federal tax system is based on principles of equity, simplicity, and efficiency.
Step-by-step explanation:
The quote, "Taxes are what we pay for a civilized society," is attributed to Oliver Wendell Holmes. Justice Holmes, a former Associate Justice of the U.S. Supreme Court, understood that taxes fund the vital public services that support our communities, such as roads, bridges, schools, police, and much more. Governments rely on tax revenue to fund various programs and services that are essential for maintaining order, safety, and well-being within a nation.
The U.S. federal tax system is based on principles that aim to make taxation equitable, simple, and efficient. This ensures that people understand why they pay taxes and are more receptive to the tax system. Two key principles here are the benefit principle of taxation, which means those who benefit from government services should pay in proportion to the benefits they receive, and the ability to pay principle, which suggests that those who can afford to should bear a larger tax burden.
Taxes are not only deducted from paychecks but are also paid by consumers when purchasing goods and services. They support not only local but also national infrastructure, education, public safety, and much more. The importance of taxes in underpinning a functioning government and civil society can't be overstated.