Quote Originally Posted by TheGrey View Post
Actually, yes. They pay income taxes, and it's not always recoverd at tax time.
Most minimum wage workers are eligible for no withholding (other than FICA/SSI), so do not necessarily "pay" any income tax. Those who do have withholding may not file for their refunds, though, which effectively results in them being taxed, I guess.

Don't forget illegals and scammers collecting benefits but still working "under the table" - no taxes or withholding on the illegal income, and little or none taken out of the fraudulently-claimed benefits.

Really, anyone working for minimum wage is a chump, because working regularly above the table at even minimum wage makes one no longer eligible for many FSA "benefits".