Air traffic is not taxed heavily compared to other modes of transport - on the contrary, it is very heavily subsidized (at least in Europe): Regional airports often strongly depend on state subsidies, airlines are exempt from petroleum taxes, flight tickets are VAT-exempt.
In Germany (and also e.g. Switzerland), long-distance trains are expected to run either at cost (or make a profit). Short-distance trains (regional transport) are usually subsidized.
I also live right next to a train line in CH (that has exactly the same kind of rolling stock passing by as the ones captured by jo-m). These are modern commuter trains (no cargo and long distance trains), and are a lot less loud than you'd expect. A somewhat busy street nearby would be an order of magnitude more annoying.
In Germany (and also e.g. Switzerland), long-distance trains are expected to run either at cost (or make a profit). Short-distance trains (regional transport) are usually subsidized.