The problem with the American system isn't the culture of direct donations from private individuals. The problem is that too few people have the means to give: it's the distribution of wealth. A culture where private people donate is really attractive. I know that I get a lot of joy when I help people out - I donate regularly to the causes I feel important (mainly Africa, as a Brit living in Netherlands I figure I ow…
I fully agree with this, even though I completely disagree with the concept of taxation. If you have to have taxation to somehow collectively pay for the things society supposedly "needs", then have everyone pay for it. We are, after all, in the same boat, so we should all pay for it. And when I say everyone, I really mean everyone that has any income.
Though, to be fair, I live in a society where something close to 90% (the bottom-most earners) don't pay any income-tax at all. And stuff, society and government function. Sort of.