And that's the problem – they're giving governments tools that let them more easily and effectively infringe on the privacy rights of their citizens. Privacy isn't invaded when the data is collected, although that's a necessary step; it's invaded when a cop or bureaucrat queries that data to see what a citizen has done. Giving them that tool is morally complicit.
~ "That's not my department," said Wernher von Braun. ~
Quite frankly, I don't think any reasonable person would consider selling software to the government to be morally corrupt unless they were reasonably confident the government would use it for evil. Right now, nobody has made a compelling-enough argument to make me believe the government will use this software for evil.
As for compelling arguments... is the history of most of the world's governments not enough for you? In US, you can look at the census for a case in point: this data was used to chase draft dodgers during WW1, and to compile list of Japanese for internment during WW2. Curiously, by WW2, the federal census law had specific provisions preventing the Bureau from disclosing that information to any other government agencies, precisely to prevent this kind of use - Congress simply repealed those provisions. Nevertheless, the Bureau subsequently denied sharing that data and buried any leads, so we didn't have definitive proof until this century.
Or we could talk about COINTELPRO, PRISM etc.
There are popular licenses with such clauses.