Saying that income tax should not be paid on wages is definitely crazy. 
My main complaint about taxing wages as income is that they do it twice - once every paycheck and once a year at income tax time. Pick one way or the other and stick with it as far as I'm concerned.
The kind of reduction of the government advocated by libertarians as well as the belief that there are no positive rights, i.e. there is nothing morally wrong with ignoring people in peril will always strike a lot of people as out there.
There's a difference between saying there's no positive rights and saying that it's not morally wrong to ignore people in trouble. One can think that a person has no right to force another person to help them but still assert that the other person should help them. For example if someone is being attacked by thugs then does that person have a right to make me risk my life trying to get rid of the thugs? I would say no, but I would say doing anything in my power to stop it would be the right thing to do.
You're complicating the issue now. There is a difference between those two things yes, but the dividing line is still sharp. The question is not what happens when your own safety etc is involved, but if it's not. Let's say you lose nothing except maybe some time. The question is then whether a person in need has a right to help, can make some sort of moral demand on you for your help, or whether he is at your mercy. Note that laws do not necessarily come into it, since one could leave this up to private charities if one wanted.
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