The solution to beat this problem is to reduce the benefits in a gradient as people make more of their own income. Here's the key: Benefits must be reduced more

The solution to beat this problem is to reduce the benefits in a gradient as people make more of their own income. Here's the key: Benefits must be reduced more slowly than the increase in income. I.e. at all possible incomes, it must always be the case that if an individual were to make $1 more income, benefit reduction is significantly less than $1.