Well first, local services and welfare aren't the only things that tax money goes towards. Foreign aid, military spending, corporate bailouts, subsidies, etc., are also used for it. I'm not saying I disagree with those, though I do with most mentioned above, but I'm just saying there's more than just that done with tax dollars.
And to address the welfare state, I believe that we should have a society where charity is not enforced by the government but taken up by private citizens and private charities and churches.
I'm a not a conservative so I don't really care who started welfare.