Do they though? The Dodgers yes, the Yankees, Mets and Padres not so much recently. Braves, White Sox, Brewers, Tampa were all under ~$153M with the league average of 128M. Definitely true that If you are near the bottom you are very likely bad, but being at the very top doesn't seem to buy you much of anything. The luxury tax does function as a defacto salary cap and teams that get too much money tied up in too few players for too long do tend to suffer for it. There is a sweet spot and it probably lines up pretty well with Avila's 'drunken sailor' concept.
https://www.spotrac.com/mlb/payroll/2021/