Welfare Recipients Are Sometimes Faced with a Withdrawal of Welfare

Welfare recipients are sometimes faced with a withdrawal of welfare benefits and an increase in income tax as their earned income rises.This creates a problem because

A) it is administratively difficult to track these individuals.
B) of the incentives for firms to lay off workers more frequently for short periods.
C) firms become unwilling to hire people that are currently unemployed.
D) of the powerful disincentives to work for low- income individuals.
E) of the incentives for workers to shirk and/or retire early.