But humans are notorious for allowing emotional concerns, religious beliefs, and simple self-interest override logic.
Maybe they just don't like the reverse-lottery aspect of funding the government. Rather than a lucky person getting a windfall from the government, an unlucky person loses everything to it. You can avoid the lottery by not buying tickets, but the only way to avoid the anti-lottery is by not having anything to steal. For most people, that would be a pretty miserable existence.
People want to believe that their government exists to serve their interests. They may be more upset that the government is spoiling the illusion of fairness--that the government is doing all this publicly--than the fact that the government is doing it at all. Because as bad as they might have it now, if there is a rebellion, the new boss might, in fact, be worse than the old boss.