The relationship between government activities and government use or threat of force is highly nonlinear.

The biggest chunk of government use or threat of violence is in property rights enforcement. Anything on top of that is mostly peanuts.

For example, if a local government raises property taxes by 5 percentage points in order to get the funds for better schools, there's likely no additional use of force at all. So it's absolutely possible to raise living standards without use of force for all practical purpose.

A reasonable libertarian who worries about use of force (but I'm aware that such people are so rare they may as well not exist) should be in favour of such a policy, because it increases the ratio of "quality of life per use of force".