Thank you for such an elaborate reply. :)

I am also from a country which heavily taxes its people, and I still think it's theft. Taxation is a very poor way to allocate resources as it puts one monopolistic central organization (the state) in power of much of society's spending. In Holland, the government spends approximately 50% of the nation's GDP. Do we really need to spend this much for roads, hospitals, police etc?

The problem with monopolies is that they are not encourage to innovate, and to provide good services. Take for example the North-South metrostation line in Amsterdam. It's taken more than 10 years to build, and still it's not finished. A private company would have been pressured to spend their resources efficiently or else go bankrupt.

If companies want more profits, you are free to stop using their service and in a free market probably be able to make use of the services of a competitor. With government services, there's hardly any choice. You have paid for them in taxes, and then you are not provided much freedom to choose.

I think what you are focusing on are services and goods that you can see after government has built or financed it. What you don't see are the services and goods that would have been provided when consumers would have been allowed to keep and spend all their money according to their personal preferences. Private law, private court, private protection agencies etc would naturally erupt in a stateless society. See for example how social order emerged in the Wild Wild West when people moved west much faster than the government did.