It's actually your arguments that don't hold water, but it would too long here to explain the reasons.
Take a look at this essay Patents and Copyrights: do the benefits exceed the cost? (warning: it's a pdf).
Note that I cannot say that I agree with all the theories on that site (in fact I'd say I disagree with most of them), but I judge the essay by its content, not based on where it's from.
And you certainly cannot say they're proposing to fund everything through taxes or that everything should be state controlled