Slightly tangential question for you- does 48% taxes include healthcare? How about pension? It’s tax week in the US, I think my rate was 22% overall. But another 10% of compensation is health insurance. Another 15% is retirement savings. My municipal water bill last quarter mostly was not for actual water usage (about 40% was for water) rest is system charge and storm water fees. Regarding the VAT thing… we may be effectively getting the equivalent with tariffs on goods and materials supposedly taking effect!
48% doesn't include healthcare (it is another about 170 euro/month per person, and, really, you don't have choice for better or worse conditions, formally there is "market" for this but it is very regulated) or pension. Some industries (but not software/IT one) have industry-wide pension funds, but it is additional payments and if you are in industry without this fund you can go to one of the "open" pension funds and put your money in them.
German here. Me and my employer pay 12 (together) for healthcare. I have no clue where the idea of „free“ healthcare came from, but it’s far from free. 20% of your wages is the general rule for healthcare here.
On paper, my employer pays me 72k per year. I net 36k of this after taxes and social insurances are paid.
Laughs in 150 EUR per month of basis zorgverzekering from the bottom of the sea
> How about pension?
Fun fact I learned the last time this topic came up, social security in the US pays more than German government pensions.
There is more than one pension -- one for old age (which the government is paying) and another from the company plan. The usual trick is to also pay out mortgage by this time, sell the house to buy something smaller and enjoy your life somewhere in a sunny place.