True, but e.g. the tax difference between an average salary in Norway and the US is far too small to even make up the private healthcare costs and other additional costs, and Norway has a far flatter salary structure - far more more peope are close to the average salary.
The effect is that very large proportions of the population end up with a better standard of living.
The effect is that very large proportions of the population end up with a better standard of living.