Yes Government is Too Big.

The tea party is correct, the government is too big.  It interferes with our lives too much.   It over-regulates.  

Of course, by government I mean local and state government.  The Federal government is relatively small (except for the military) compared to almost all other governments.  It doesn't do much at all to screw with my life. 

It's the states that do stupid things like outlaw fireworks, not the federal government.

It's the states that get upset and outlaw beverages with alcohol & caffeine.
It's local government that outlaws garage sales (or just the signs - to sound reasonable when they are not)
At the smallest level, it is the stupid home owner's associations that try to tell you what color you are allowed to paint your house.  

The Federal government just does NOT interfere with citizen's lives except on rare issues that many people have very strong feelings (homosexuality, abortion, sexual discrimination, etc.) and therefore demand government regulation

The reason is three fold.

1. The federal government has way too many important things to do.  They generally don't have the time or energy to screw with anyone on the small scale.  Only the largest organizations (corporations, non-profits, etc.) act on the scale that the Federal government has to regulate them.  But those organizations need to be regulated by the Federal Government, because only the Federal government is big enough to stand up to them.
2. The federal government gets the best people from all around the country.  You may disagree with them, but it has a larger pool,so generally the worst idiots and tin-pot dictators can't find work.  But the local and state governments have to work with the rest. 
3. Worse, the federal governments can offer real salaries, and full time jobs.  State and local often have to deal with volunteers or poorly paid people - both of which have a second, real job.   You get what you pay for.

Note, not all such regulation is wrong.  Speed limits for example are a valid state regulation (although some might argue about which limits are fair.)   The point is that when government gets too big, chances are it is the state and local government that is too big, not the federal one.