government employees and contractors pay taxes and spend money in the community as well as anyone, no?
One thing I missed in the original post is that it is "National" government.
So with that clarification.
All expenditures by the National Government are taxes.
I do believe the National Government does good by spending our money for Infrastructure that benefits society.
There are not many of these - interstate highway system, NASA, ... I can't think of any more but I'm sure there are a couple of things.
The other thing the National Government "could" spend money on that makes sense and that is protection of out National borders and interests. Most of the wars are not good investments is the reason for "could".
Everything else should be left to the other forms of our Federal government structure such as States and Local government.
People should be able to make choices - if you want the State Government to take your money and in turn provide all kinds of services, then you can choose to live in Massachusetts. If you want to keep your money and have the State Government provide very few services, then move to Texas. As long as US citizens have the right to migrate from one state to another, there will begin to be a tendency for the states to provide only those services that they need or want.
If a state is "out-of-line" they will lose their population and therefore their tax base.
To me, this is one of the great injustices of the strong, centralized national government providing or controlling most of the services. There is no pretense of a market system in place.