I imagine that the government thinks—and this is not how AFEAS sees things—that this cap would allow it to take back part of the GIS that it would otherwise have to pay. So it has to give less to a person who earns more than the cap.
This means that a person who is receiving the GIS is better off not earning a penny over $5,000. The bill is proposing to raise the amount after which the government would take back part of the income earned to $6,500. That would be better than $5,000, given how everything has gone up over the last two years. However, even if a person had the opportunity to earn more, setting a cap might be a disincentive to working more.
We have to remember that in today's economy, we are asking seniors who are able and want to keep working to do so. There is not much of an incentive for someone who is receiving the GIS to work enough to have an income over $5,000 or potentially $6,500. This does not necessarily help the economy. So people should be allowed to work as they can. If they earn income above the poverty line, maybe they will no longer be entitled to the GIS, but they will be earning a better income that will enable them to cover their day-to-day expenses.