The mothers would then be free to work or be trained for a suitable occupation. Never must the system lock out those who would work but do not do so because benefits are abruptly cut off.

Food stamps are already being issued in electronic form in some states, by way of social credit cards. The advantages of such an approach are obvious, since their food-value can not be sold or misused in any way. This could be the pilot program to the use of the social credit cards nationwide. I would call such a system as the Americard, since it identifies our virtual government.

The entire welfare system can be disappear if the IRS child care credit is folded into it. All children would have the right to be cared for in either a pre-school or educated at school. For those mothers who can not afford the price of standard day care, a credit line for that purpose must be maintained on the Americard. The year's end child care credit from the IRS should be paid monthly to make it practical, in a form similar to the W5 Earned Income Credit.

A seamless system would permit all people living under the poverty level to receive benefits directly to their accounts, all on one card. There must not be any fixed cutoff points or discontinuities in the benefit formulas. Once explained, the formula for each program on the Americard would be accessible to all.

It is important to note that Welfare is seen as undesirable by the middle class and working poor. Yet, unemployment insurance is not stigmatized. Few argue with giving or getting unemployment payments, even though there are no work requirements at present. The Americard system can turn povertyware into true wellfare by simply transferring the payments to a state of the art card system.

Americard credits must be issued on a monthly basis by means testing all applicants electronically. No system updates are required if all remains the same, but any variants should be posted by the employers or providers directly to the Americard processing central.

In effect, all applicants will go through the income tax process in on a monthly basis, but using only one initial application for all credits, and one electronic means test.

Finally, we all know that business is being subsidized by social welfare payments whenever it employs people at poverty levels. Pay people what is required to make at least a modest living and you eliminate the reason for welfare payments. True Welfare is still in the future.

Atlanta,
January 14, 1995