As pointed out above, *all* workers pay Social Security taxes on *all* wage income up to $110,100, regardless of their actual income. The nominal SS tax rate is 7.25% (less these days due to temporary cuts) for wage-earners. Double that for the self-employed.
The federal minimum wage is $7.25. Some states have higher minimum wages, many don’t. We’ll use this figure for now.
For federal income tax, the total amount of income which is exempt from taxes (Standard Deduction + exemption(s)) is:
Single, no kids: $9,500
Married filing jointly, no kids: $19,000
Married filing jointly, 2 kids: $26,400
Suppose we have a minimum-wage worker who is lucky (!) enough to be able to work that job full-time, and gets 1 week off per year (51 weeks x 40 hrs a week)–> they work 2,040 hours a year. This nets them $14,790 gross income.
However, it’s more usual that minimum-wage workers work 2 or more jobs. Let’s say they are again lucky (!) and able to work 60 hours/week. That’s 3,060 hours a year, which nets them $22,185.
It’s very easy to see a scenario where a young childless couple, or even a couple with children, are both working minimum-wage jobs. There’s a good chance one or both of those jobs is *not* full-time. Not by any wish of their own, but because many minimum-wage jobs simply do not come in the “full-time” flavor.
Thus, it is entirely possible for a young couple, with our without children, to be working and paying in Social Security taxes, but still coming in under the Federal exemption wire and thus not paying Federal income taxes.
And I’m willing to bet that those people, if you told them they could no longer enjoy the benefits of American citizenship “because you don’t pay any income taxes”, would pick up the nearest implement of destruction and earnestly beg to differ with you.
