You are partially correct, I used an imperfect example, Social Security  might  or might not pay, I know many folks who are refused by social security but they are non the less disabled and unable to work. Social Security if paid is not taxable, and in my opinion neither should a super low income person be taxed on their PFD income, but under the Walker plan more than 50% of the PFD that this imaginary disabled person receives is taken away, without any fuss or muss. If it was simply taxed as taxable income as I would propose then it would be at a far smaller percentage than 50% for somebody in this situation and probably not taxed at all. Those supplemental payments you mention are also reduced or eliminated under the walker plan, and many other plans being bandied about.