I think this article gets something right, pointing out trust. Another word would be "solidarity" - believing you 'owe' your fellow countryman and that you are on the same team. What's good for you is good for me.
In Denmark, we pay something like 50% tax but we also get a lot of things covered by our state which other countries let the individuals get through expensive insurance.
This means that if my neighbour get rich, I'm happy since that means a better school for my (and his) children, help for my (and his) old parents, roads that gets fixed etc. (Edit: some of the money goes to the state and EU, while a healthy chunk stays in the municipality - this keeps the money close)
My point: it only works if people are indeed on the same team.
That is why big nations are a detriment to this model. If the taxes disappear into black holes, negligent waste and corruption the system crumbles quickly. And as we all know, it takes much longer time to build trust that to kill it. It is a constant battle (which right now, it feels like we're losing, but that doesn't matter for this post).
Can big nations like the U.S. copy this? Well, Denmark is about the size of your average state. So yeah, if each state made an effort to make the public sector make sense internally on state level, it could.
I don't think it will, though. The cultural gap is too wide and expecting people to always be looking out for number one isn't seen as a bad thing.
Just remember that Danes/Scandinavians aren't better people than others (except Swedes; we're ALL better than Swedes!). It is a matter of choice and goals.