It is true that the State can't do anything if the people don't want to.
But the state isn't just "paperwork"
The state is the common ground of people. It's what they all more or less agree on.
And I don't see anything wrong with taxes, how do you expect to pay for public services without them? Every "private" service has been proven being objectively worse and more expensive... Look at USA healthcare and education, twice as expensive as French one and largelely worse.
What I think is wrong is that we're not deciding what get expended where. That's wrong I agree
"Public service" isn't always what it seems. For example, if the public no longer wants a particular service and would rather not fund it, would those public servants gladly get laid off? Or would they value their own personal job and income over the service they provide? I live in Canada and as soon as there is a department that is going to get funding cuts, they start picketing and threatening to go on strike. So keeping a job is priority #1. That type of public service will tend to acquire lower talent, and offer subpar service. I'd say private companies will always provide better service, because they need to compete for business.
Healthcare and education in the states is regulated, plus the government provides access to huge amounts of debt. It is the government that enables colleges and universities to basically require you to take out a mortgage for your education. If students couldn't access that type of debt, prices would have to fall as a result, as the non affluent population wouldn't be able to afford it.