Are Paypal donations taxable?

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How much is x and what do we get for our money?
Well that's up to the politicians you elect.

It doesn't look to me like those billions of dollars were very cost effective.
I didn't say they were. I said it costs 'x' amount of money to run the country, and there's only the citizens to pay for it. The only difference is in which groups you chose to tax.

In Germany, even stolen(!) money is taxable, because our tax laws do not judge where the money comes from.
Sure, same in the US. But chances are that since you've already committed one or more felonies, tax evasion probably isn't something you're going to lose much sleep over.