Unless you are earning above 400k€ per year your income taxes will be less than 42% of your income in Germany. Lets say you are earning SF type salaries in Germany. Something like 150k€ per year. Your income tax will still only be 30% of your income. So why are only 90k€ arriving on your bank account? (60% of your salary). Because medical, unemployment, long term care insurance and pensions are mandatory but also provided by the government in Germany. The effectiveness of these insurances is much lower if only a minority is taking advantage of them.

Imagine extreme examples like everyone who signs up for unemployment insurance is freshly unemployed and once they find a job they cancel their insurance. There is no way to make it work without the government.