It does have everything to do with it. Why would anyone in Europe be motivated to build anything innovative if they know they will have the government taking 50% of every dollar they make to fund social programs they probably won’t even receive the benefits of? Why would anyone work hard in that environment? You’re completely ignoring the social/productivity implications of high taxation. Additionally, China does not have anywhere near the level of social programs Europe does. No one in China takes two months off a year as a checkout clerk.