There is no benefit in gov't providing services beyond that which can only be provided by gov't as an essential service. Law enforcement, courts of law...etc. In every area in which gov't has actively involved itself in the marketplace, the result is always the same. Prices go up...quality and/or accessibility go down. The gov't has been distorting prices in the healthcare sector since 1965, and we have received exactly this result. The same can be said for education.
The tax argument is a totally different discussion. Taxes and actual revenue to the gov't are in no way related. When there are higher taxes the gov't collects the same percentage of revenue as it does when there are lower taxes. The size and scope of gov't is really not driven by tax rates or the number of new taxes created. When the highest marginal rates were over 90%, the gov't collected the same share of GDP in tax revenue as they did when rates were at 28%. The higher tax rates seen in the 40's and 50's were essentially a myth. Nobody actually paid those rates of 90% because there were countless ways in the tax code to avoid them. Signing up for money losing schemes on paper was an accounting art form at that time. The tax reform of the 80's lowered rates and simplified the tax code to eliminate many of these tax loopholes to simply create a somewhat more efficient system. But the net revenue collected as a % of the size of the economy did not change much.
The expansion of gov't tends to be driven by political salesman and the selling of new services of gov't which virtually always do more harm than good. There is a very big misconception about how tax rates impact gov't. Tax rates and the complexity behind the tax code has more of an impact on the activity within the private sector...which in turn can and does impact GDP. But no matter what rates have been since the end of WW2 the US treasury has collected about 15-20% of GDP. The size of gov't and the corresponding spending to fund gov't operations is not limited to the revenue collected by the gov't. The private sector creates wealth, and the public sector creates currency. The only way for currency to increase on a net basis, is for gov't to spend more than it takes in. This is how our monetary system grows. The concern is when the actual services provided by gov't crowd out private activity and limit the creation of wealth, which hinders productivity and is potentially inflationary.