Taxation is used by governments to provide services for the defense, safety, health and well being of the taxed. At least that's the theory.
Taxation has the cachet of legality since every government does it.
Wars have been fought over it. Governments have used it as a foreign policy weapon. And we, the pixel mechanics of the world, have screwed everything up for them in just a few years. Virtual business has changed the landscape and the rules of the game. The landscape is littered with the corpses of businesses that are not adapting to the Internet.