If you are not financially independent then taxation (on income and consumption) directly reduces your ability to get to such a state.

If you are financially independent then it reduces the number, or type of activities/goods you can partake in or buy.

I offer without proof the claim that being free in the economic sense is a far greater determinant of happiness.

Because 30% tax off a $1,500 a month salary is a lot worse for your chances of survival/living a decent life vs if you had a salary/income of $15,000+ a month.