It's simple: you have based your proposal on false principles. Paying higher taxes do not necessarily means higher quality of life.
For example crime is more close to urbanism than economic inequality (from your question derives: lesser inequality, higher taxes, more quality of life)
Quote:
...'Correlates of crime
No association was found between indicators of wealth or economic equality and levels of overall crime. High crime countries include both relatively affluent countries (Ireland, Denmark and the Netherlands) and some of the least affluent (Poland, Estonia). The category of low crime countries is equally diverse. It includes both relatively affluent countries, such as Austria, and less prosperous ones, such as Hungary and Portugal. Within the European context, levels of common crime seem to be neither associated with poverty nor with national wealth.
Other macro factors known to be associated with levels of common crime are urbanisation and the proportion of young adolescents in the population (Van Dijk, 1999)...'
You can check the whole report here:
http://www.unicri.it/wwd/analysis/icvs/pdf_files/EUICS%20-%20The%20Burden%20of%20Crime%20in%20the%20EU.pdf
But in other problem is you’ll also need a central and very efficient government responsible of everything. This has proven unrealistic so far and there are many examples of centralized economies that proven a total failure, much more than open market economies.
On the other hand you used as example Scandinavia, which I believe you can't use as example.
Why? Simple if you look in the CIA factbook
Norway:
Pop:4,627,926
Oil - production:
3.22 million bbl/day (2005 est.)
Oil - consumption:
244,300 bbl/day (2004 est.)
Oil - exports:
3.018 million bbl/day (2004)
Oil - imports:
91,930 bbl/day (2004)
GDP (purchasing power parity):
$213.6 billion (2006 est.)
GDP (official exchange rate):
$264.4 billion (2006 est.)
Area:
total: 323,802 sq km
land: 307,442 sq km
water: 16,360 sq km
If you put together all those facts you will understand that Scandinavian countries' high quality of life comes from more than higher taxes.
It comes for very low population density in combination with addressing issues faster and maybe better.
Country Pop Area Density
Norway 4,627,926 307,442 15
Denmark 5,468,120 42,394 129
Sweden 9,031,088 410,934 22
Scandinavia19,127,134 760,770 166
UK 60,776,238 241,590 252
Can you spot the difference?
Another example than higher taxes are not the solution for everything is that we will see that whilst analysing the Human Develop Index that Norway is on top (very high taxes, very low density) Denmark is on place 15th below USA, Japan and Ireland (8th, 7th and 4th respectively) even when Denmark taxes are higher.
Because the reasons mentioned before I don't believe than paying higher taxes is the solution for a better country or a better life; however I think that addressing the issues on time, reducing bureaucracy, giving more freedom to people and incentive the people's collaboration towards common objectives through the use of mechanisms based on real needs and entrepreneurial participation along with higher independence for local authorities so they can approach local solutions faster and more efficient is a much better solution than just higher taxes. Thats why!
Bye