As part of any legislation to eliminate income tax, there needs to be a law prohibiting or minimizing the reduction in wages. I think both employers and workers should benefit from this change, but I suspect that without regulation, many will take advantage to simply reduce actual wages overall.
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In a sane world, no income taxes don't cost them anything and their employees get a net raise in pay. Should be a no-brainer to leave their salaries as is.
But given what I've seen in the job market in the last few years, and the posts of the narcissistic sociopaths on LinkedIn that call themselves "founders" or "leaders", I suspect your concern is justified.
It is a clown world afterall.
AND YOU HAVE QUITE SUCCINCTLY HIT THE NAIL ON THE HEAD---SQUARE!!!!!!!!