Calculating Core Income Taxes

What happens here

The presenter begins a series of calculations on a whiteboard, starting with an average median household income of $52,000 per year in North Carolina. He calculates the federal income tax at 22% ($11,440), FICA (Social Security and Medicare) at 7.65% ($3,978), and North Carolina state income tax at 4.5% ($2,340). He subtracts the federal income tax from the total income to show the remaining income.

Goal: Demonstrate the impact of federal, FICA, and state income taxes on household income.