Big government does not, in fact, hurt the people. Authoritarian government does. Anarchist government does. But, in fact, the Cato institute (a libertarian right think tank) ranks 'big government' countries like Norway higher in the freedom index than the US.
Back to taxes, however. Oliver Wendell Holmes Jr said that taxes are the price we pay for civilization. It keeps our streets safe, puts out fires, educates our children, (ideally for me) provides the people with healthcare, and runs our courts. Privatising those things would be problematic, to say the least. For example, privatizing college loans was a huge mistake. When it was started, it was government-run and functioned well. It gave out loans, and people could pay them back fairly easily. Then, it was privatized and people were stuck in huge college debt, with some not even being able to pay off the yearly interest. In Canada, for example, the average Canadian receives about $41,000 in government benefits per year. That is a great deal for the vast majority of them.