Bet you didn't know that you didn't pay income tax until WWI(maybe WWII) either. The whole point of that was to pay for the war.
The 16th ammendment was ratified in 1913. Archduke Ferdinand was assassinated on June 28, 1914. The US entered The Great War on April 6, 1917. There's a bit of a discrepancy there.
We both operated, and survived fine without government taking money out of our pockets on a regular basis.
Yes, and we had limited interstate commerce, virtually no regulation of commerce (I'd hope that, even as a libertarian, you're not against child labor laws or even basic workplace safety laws), no food or drug safety laws, no environmental regulation (you may wish to dicker over the extent needed, but pure capitalism does not adjust costs for long term negative effects of production), or a number of other actions that do fall to the Federal government under even strict interpretations of the US Constitution.
The federal government should exist to protect the nation...that's it. No more, no less.
To quote the preamble of the US Constitution:
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquillity, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
That's considerably more than just having a standing army. You'd be hard pressed to prove that the interstate highway system has not "promoted general welfare", or that food and drug testing don't do the same.
Let the states handle what they want.
And when it comes to issues larger than any one state? Like environmental concerns?
I'm closer to libertarian than either of the mainstream political parties, but there are reasons they've never managed to get anywhere. It's an idealized political viewpoint that often loses touch with reality.