Yes, your point is clear, though I'm not sure if I agree or not :).

I think the confusion is over the term "benefits". In the usage I've seen, benefits includes things not directly associated with the income tax code, like say, food stamps. If you increase your income, you may lose access to food stamps, but the food stamps don't come with your income tax returns and receiving them is part of a separate application process in most (all?) states.

So when you said income tax, I thought you were including those kinds of programs. But it sounds like you mean something closer to "benefits and deductions" directly in the tax code, like the earned income tax credit.