I forgot something important while trying to figure out taxes yesterday. you are only taxed at these rates for money earned above that level. so it isn't the case that earning $89,000 and $105,000 take home the same amount of money (married), however, every dollar you earn over $89,000 is taxed much higher than every dollar below, so there is a strong slowing effect on earnings
FICA is a flat rate of 7.65%
let's see what the effective tax rate is for a programmer in California making $120,000 trying to have his wife raise his kid
FEDERAL
10% on 22,000= $2,200
12% on (89,000-22,000)= $8,040
22% on (120,000-89,000)=$6,820
total federal=$17,000
FICA
7.65% = $9,200
State taxes (California)
1% on 20,000 = $200
2% on 48,000-20,000 = $560
4% on 75,500-48,000 = $1,100
6% on 105,000 - 75,600 = $1,764
8% on 120,000-105,00 = $1,200
TOTAL = $4,800
TOTAL taxes = $17,000 + $4,800 + $9,200 =
$31,000
So the worker who makes $120,000 in california pays $31,000 and is taxed at 25% total
this does not include real estate taxes if he owns anything or rent of course