Rachel Sheffield of The Heritage Foundation wrote me an email on my prior article: "You are absolutely right that welfare programs should not discourage work, as all too frequently has been the case.
You also make a good point that welfare assistance is not included when calculating income for means-tested programs, which skews the picture of poverty.
You may be interested in reading about more of our strategies for welfare reform. Below is a link to one of our recent papers:
http://www.heritage.org/Research/Reports/2010/06/Confronting-the-Unsustainable-Growth-of-Welfare-Entitlements-Principles-of-Reform-and-the-Next-Steps
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