I think you're misunderstanding the punishment. For needs-based programs, a lot of the time, you either get the $500 or you don't. There is no gradual falloff like there would be for taxes. So if the cutoff is $X and you earn $X-100 then you'd be punished for getting a job that pays $X+100. Before the new job you got $X+400 in the bank but now you only get $X+100. That doesn't happen in a UBI. Sure you'll end up getting "punished" by having to pay higher taxes however you're also earning more to begin with so there's never a scenario where you end up worse off for getting a better job.