[chipsa]

Can't go below a threshold. Cool. So threshold is $12k or whatever. Person could work, and get $200 a week. So they get $50 a week in benefits. Or they could not work, and get $250 a week in benefits. So why work? Working more or less in the very low income range doesn't make any difference. So they won't. Not at a 100% income tax rate.

That's the point of having it being a fixed amount: you can tax the regular income, so the effective amount they get decreases as they work more, but you don't have perverse incentives to not work.