Being from Europe originally and having lived in Silicon Valley now for more than 10 years, I did the math on comparative taxes.
In the end, it's a wash. If you take into account everything. I make more money in the US. But my retirement costs are higher. And by the time I put two kids through college (college is free in some European countries), it basically balances the extra cash I made over a 20-year career.
Of course, for any given situation (single, dual income no kids), your results will vary. But I'd argue that a household with 2 kids is fairly common.
Even if it is a wash, and the costs of things end up being the same, the real issue is the question of who should be spending the money you earn.
Should the government be allowed to forcibly take your earnings away to pay for your kids college and purchase retirement for you?
What if you decide your kids would be better off earning their own way through college, or what if you want to retire in a location with nice weather and a very low cost of living?
It sounds like living in Silicon Valley has not made you more wealthy, it's just provided you with a wealth of choices that the author of this article doesn't have.
In the end, it's a wash. If you take into account everything. I make more money in the US. But my retirement costs are higher. And by the time I put two kids through college (college is free in some European countries), it basically balances the extra cash I made over a 20-year career.
Of course, for any given situation (single, dual income no kids), your results will vary. But I'd argue that a household with 2 kids is fairly common.