That is false. A single person making $160k/year and living in northern VA would receive $9k/mo in after-tax income.

I would love to see your math for this.

Guessing they meant pay 4k in tax.

It's capped at 160K. This means most are likely making less.

For a data point, I was offered $130k for a position at the IRS (as a USDS employee) working on taxpayer authorization, authentication, identity management.

That's about the number that my contact as a non-USDS employee (they seem to try to hire people for other orgs --"oops, sorry, we're actually full up, but do you want to work for the VA?" - no, no I do not, under any circumstances) was floating at me.

Mind sharing location?

Would've been working out of DC, relocating from the Midwest, for a 1-2 year "tour of duty".

Even a lowly GS-7 is making something like 3 times minimum wage.

They probably are making less than they could in the private sector, but calling it "minimum wage" is just ludicrously out of touch.