The federal government is basically a coalition of the fortune 100 corporations. The larger and more toxic to liberty it gets, the more power the 1% has over the rest of us.
Yes and no. Yes because corporations and the 1% buy lobbyists to get their way. No because representatives are elected mainly with votes, and buying votes costs a lot of money and it's feasible only to a point. So politicians cannot be completely indifferent to the other 99%.
To me, this is a call to fix the loopholes that let 1% and corporations buy votes, more than a call to shrink the government.
Moreover i don't fully understand the measure against which a government can be classified as big or small, perhaps size of public spending vs GDP ?. Remember that most of the taxpayer's money get spent on private entities in healthcare and defense anyway, so the government is just a mean for "us the people" to buy ourselves defense and healthcare.
In any case, i see and understand your point, even if i don't totally agree with it.
Today, the liberals draw more political power to the state with things like encroaching tax, identity politics, censorship, and other marxist tenets
I honestly don't see this, can't make examples of any "marxist tenets" that are held sacred by the left. To the extent that this is really so, and these tenets run contrary to the interest of the population, then it is absolutely something that the left needs to fix.