A lot of the money they take in tax comes back in the form of state sponsored services, which you don't have to pay again for. For example, my 2 kids are in kindergarten from 08:00 - 16:00 Mon - Fri. This costs me about 200 quid a month for the two of them. My friends in the UK pay an absolute fortune for an equivalent service. My 25 min train journey from Shenfield to Liv st used to cost me nearly £3k a year I think. I now pay half that for a 25 minute boat trip which also includes unlimited trams, trains etc.
My wife and I have been given 12 months parental leave (her 10 months, me 2) and we continue to get 100% pay. That means you don't lose a few years of income to have a family
People here don't drink alcohol like we do in the UK. They would never go on an all day sessiondrinking all day as it would cost a fortune. they normally buy their full limit of alcohol every time they travel (Norwegians fly a lot) and have people over for dinner, get smashed at home and then head out at 23:00ish to drink a few in bars
Over here, the lowest skilled professions earn a wage that means they can afford to go on a good holiday every year, many own winter or summer cabins and boats (you can deduct your loans and mortgages from the assets you own so it is better from a tax perspective)