Here's a combinatorial proof. Suppose

has

elements.
For a subset to contain

, it must consist of at least one element. So if any given subset has

elements, where

, then

is not one of the other

elements. This means the number of subsets containing

is

Put another way, we are choosing elements from

to form a subset of

elements. We want

to be in each subset, so we have

other elements of

from which to choose. Then we sum over all the possible sizes of the desired subset.
On the other hand, if we want to build subsets not containing

, then we have

total elements to choose from, and we can make subsets of size ranging from 0 to

, so the number of subsets not containing

is

We have

, and in the second sum we can shift the index up by 1 to get

which is the same as the first count.