> We would stop paying taxes for this services and instead private services would spring up that we could chose to pay monthly for

I don't think this would work very well, because I do want my neighbors to pay for fire-fighting services in case their house is set on fire. Moreover, to a proportionally lesser extent, I want their neighbors to pay for the same thing, and so on. There are a whole lot of cross-externalities that can't be dealt with easily via private contracting, so we need the government to step in and provide a sensible "default" that's not simply "no one gets any fire-fighting protection unless they pay for a private service".