......Wont the 2% reduction in Social Security tax now be subjected to state and federal income taxes? .....
I don’t think so. SS taxes are not deductible for income tax purposes. Adjusted Gross Income will not be changed and no income tax paid on the windfall. The amount os already taxable as income
Cutting your Social Security contribution by 2% would shift that money to your income that is taxable by federal and state governments.