There is absolutely distrust on both sides but the focus of distrust is very different -- the left's distrust of government is more rooted in donations from Coporations/special interests being used to coerce politicans to bypass population that benefits the masses in favor of legislation that benefits high-income earners, but for the most part the left does not distrust the concept of government in totality like the right does -- at this point it seems the right has gone full nuclear and just wants to burn the entire institution down because they inherently distrust the insitution, no matter who actually is in charge (Republican politicians run on governance by way of non-governance).
I'm not really sure what the future social and political landscape is in this country going forward when you have two sides with completely polar opposite views on social/economic issues, and with the gap between the two widening with each passing day.
I think what you're describing is what I think of as the total dominance of neo-liberalism, whether someone is defined as left or right, ie having an issue with authority (the good, bad or ugly) or an issue with taxation (but strangely not equally involuntary private exchanges), the answer will always be some sort of privatization.
Its something that seems lost on most people the extent to which the supposed left wing attack on policing and schooling could be right out of the neo-liberal playbook, defunding, cancel culture etc. Ultimately, its stuff that really, really would not be out of place coming from Republicans at a different time for reasons of containing and rolling back public expenses.
I noticed this back in the nineties when New Labour was elected in the UK, when they decided to correct historic short falls in spending on criminal justice, policing, legal aid etc. the conservatives, traditional supporters of "law and order" policies, decided that when next in office they would revive a lot of old ideas from radical criminologists about closing prisons, cutting policing by uniform officers, stepping down cold case or special investigations. That might have been contrary, simply, which in the UK certainly is the case but it certain fits the "no more taxes" neo-liberal ideas.
In the US, it could be given racist (local) colours, with taxes presented as redistribution from one ethnic group to another, free rider policies exclusively associated with one ethnic group etc. etc. but it is same idea. All the alt right ideologies, nazi stuff, other edge lord stuff, its all just thinly camoflaging the money angle. Again.
Only a certain amount of this, I think, can be down to realpolitik about old money (or even new money or politicized financial speculators) exploiting globalization to relocate the the "cheapest" tax havens money can buy.
I think a lot of it is down to an incredible shortfall in political imagination. Its like left and right both have bought lock, stock and barrel the old TINA (There Is No Alternative) idea. Its more of the same. Given the record of responses to bad weather and disease, is a huge case of too little, too late. I do think there are wider issues, a sort of maturational crisis, failure to grow and therefore naturally the insetting of decay instead but politics, in theory, is meant to be leadership of the better, brighter or elite types.