It also breaks down when there are multiple overlapping programs, as there are now. Maybe each program drops $0.25 for every dollar earned... but if you are on four or more means-tested programs, that's completely removed the benefit.

Similar are the many programs that have cutoff at, say, 150% poverty level. Individually not a big deal, but when you lose a multitude of different benefits going from 25k to 35k income, it can be a perverse incentive.