Welfare traps are most definitely a thing, but removing welfare is not the solution.

The solution is to remove restrictions like "we will only give you disability/medicare if you have less than $2000 in 'non-acceptable' assets", or "you can only get food stamps if you make less than $20k/yr" or any number of horribly terrible things we do that effectively give very poor people, in an economic sense, marginal tax rates much much greater than 100%.

Punishing people for making more money is never the solution. Honestly this is one reason why UBI is so enticing... any benefit that is abruptly taken away at any point creates these horrible incentives.