[fanpuns]

As an American living in Germany, I can vouch for this. My wife and I did a big calculation when we were thinking of moving back to the states. Basically we made three projections based on three different time frames/factors: (a) 1 year comparison (gross net income - tax only), (b) 1 year comparison (net income - all costs including taxes, fees, cost of living etc), and (c) 20 year estimate of point (b). For fun I tried to extend the tables out to a 'lifetime' value, but there are so many variables and assumptions that I don't think it's worth it for anything other than fun.

If you only look at salary - tax rate, the US is far and away better, but as soon as you start to factor in other things to get a real net income it goes to the German side pretty quickly. If you calculate out for 20 years (especially if you want to send kids to college) it's not even close. Moreover, we have a relatively high income and if you more in the middle or lower tax brackets, the values you get from services vs what you pay into the system would be even greater.

From what I see (commented here and elsewhere), many, many people do not have an accurate idea of what their actually paying and making over time. The easiest thing to compare is salary numbers, but it's also the most flawed because net income minus taxes is only the start of a real calculation not the end answer. You should also take into consideration the non-monetary things that come with living in each place as a more qualitative list (this will, of course, differ from person to person). As already mentioned vacation is lengthy and it's expected that it will be taken (and people really try not to bother you while you're away), lower anxiety due to less crime and a better social safety...

Slightly off topic, but I would highly encourage people to make projections like this for their households. It could be eye opening and I've found that is has a very positive benefit on long term goal planning and budgeting.