I've been struggling with this idea since I moved into a house. I don't condone government control of many aspects of life, even local government. This leads to conflict, for me, about dealing with local officials and budgets. Our town votes on a town budget and a school budget every year. I know that government-run schools are wrong. Every year I either vote against them or refrain from voting.
I'm dissatisfied with that! I feel like I'm living in denial. There are government-run schools. They will have tax-payer money to run them. I would like to be a constructive force for change in the government school system--not some curmudgeon who will always vote 'no' and thus ignored. (This is a huge issue in our town because almost a third of the residents are seniors who are sick of paying for other people's kids on their fixed incomes.)
I once thought that perhaps I could recognize the whole exercise as improper, but vote for or against the budget based on whether I thought the expenditure itself--apart from where it was coming from and why--seemed appropriate. But then I convinced myself that this was also an evasion.
I'm also curious about how one would deal with local government officials. Suppose I want to appeal my property assessment. Would I first make an opening statement about the entire process being immoral? That would be ridiculous. They don't care. I'm not sure it would be completely OK to not say anything at all. My most pressing concern is with the school board.
I'm not planning it, but what about running for office? Could an Objectivist run for local offices and knowingly have to deal with zoning, open-space planning, recreation departments, insanely stringent environmental regulations? Of course one would do whatever one could to minimize or eliminate such overkill.
I've worked myself into a damned-if-you-do and damned-if-you-don't situation and I can't come up with the proper reasoning to find a solution.