More precisely, given a salary of 85'000€, about 17'500 (20.5%) goes into income tax and about 16'800 (19.7%) goes into social contributions, though one can reduce the latter by taking a private health insurance*. The remaining 60% (Nettolohn) can be used to purchase things, usually paying 19% of VAT on them (though rent is exempt and food has a lower tax).
So, “half goes away in taxes” is an exaggeration, but I can totally sympathize with the feeling. Especially since the quality of healthcare is declining and the pay-as-you-go pension system is only built to benefit the current generation of pensioners.
* note that, if one is earning less than 77'000€ today or less than 84'150€ in 2027, one is prohibited to switch to a private insurance. One of the most regressive precepts of the German system.
So, “half goes away in taxes” is an exaggeration, but I can totally sympathize with the feeling. Especially since the quality of healthcare is declining and the pay-as-you-go pension system is only built to benefit the current generation of pensioners.
* note that, if one is earning less than 77'000€ today or less than 84'150€ in 2027, one is prohibited to switch to a private insurance. One of the most regressive precepts of the German system.