No Taxes on Tips / Over-Time / etc?

I’m curious if “no taxes” means no taxes or just no income tax (well, probably state tax … but that’s not something the federal government can easily control). When I was trying to support myself on minimum wage, it wasn’t federal income tax that was eating up my paycheck. It was some FICA thing — which I quickly learned was what funded social security and medicare.

Either reducing “taxes” isn’t going to have as big an impact for lower income people as they might expect or they’re talking about impacting people’s future retirement benefits. Because — reducing the earnings could very well reduce your future social security income too.

https://www.ssa.gov/pubs/EN-05-10024.pdf

It may be nice, today, not to pay taxes on that income … but if your $2/hr income is what is used to determine your retirement payments, that’s going to suck!

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