Norway isn't actually in Europe - at least, not in the European Community. The tax there is very high, but so are costs in general, and salaries, and the standard of living. I spent some time in Bergen and loved the place - although it's disconcerting that everyone speaks perfect English with strong American accents!

In general, taxes are higher in Europe (in comparison with the USA) because social welfare systems tend to be more developed here. It has to be said that beaurocracies are also highly developed here, and suck in a great deal of money for little benefit.

Rob