You are passionate in your defense of government...I'll give you that. Tell me, did we need the government to invent cars for us? People were happily living their lives with horses and buggies and bicycles at the time. There really wasn't demand for cars, but they were invented anyway and the rest is history. Same deal with trains.
The fact of the matter is that government IS a corporation. It's just the most inefficient corporation in the world because it has a captive customer base and no competition. There is no motivation for the government to find a better or cheaper way to do something...if it costs too much, they'll either take more money from us or create it out of thin air. If you take away that ability, then it forces the government/corporation to become efficient.
Here's a, perhaps, less drastic analogy for you. Say the government were to provide their services a la carte. Everybody pays a base tax that covers things that cannot be broken out (national defense, welfare, etc.). But if you own a car, you pay a little bit more for access to the roads. If you have a child in public education, you pay more taxes. This way, competition would cause the public schools to either get better or shut down completely. If you can afford the extra taxes for public education, then you may be able to afford private education. If private offers better quality, then public will cease to exist. And before I hear about how unfair this is to poor people, please show me the Article or Amendment in the Constitution that says "A persons right to an education shall not be infringed.".