In this case, that's right.
I will give you two unsatisfactory solutions that are to be avoided. We should not try to deal with the implicit tax problem by eliminating tax benefits. People would be poorer but there wouldn't be this problem of implicit tax. That is not the solution.
Transforming it into a universal program available to everyone is not the solution either because that would be extremely expensive.
Among the richest people, there is a psychological threshold of 50% that they won't cross. In the same way, there needs to be this psychological threshold among the poorest people. There needs to be some kind of agreement between the government and the citizen that states that for each additional $1 earned, losses in the form of taxes and fewer tax benefits will not exceed 50¢.
It's much easier said than done because there are two levels of government and a myriad of programs that aren't necessarily consistent with one another.