Could Villas spouter give us the source of their information on Social Security? The funds that are collected from people’s wages for FICA go into the social security fund. That money is used to pay benefits. Trump has floated the idea that income tax you pay on your earned social security be cut back or eliminated. Right now for most taxpayers the amount received is taxed as income. It is a form of double taxation. FICA when you are working and income tax when retired.