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August 15, 1994

President Bill Clinton
White House
Washington DC

Re: The First Three Are Free! - A Small Business Rallying Cry; and Welfare Auctions

Dear President Clinton:

Jobs, the economy, crime. These seem to be the main problems for most Americans.

There is something you can do to help cure these problems, something which hasn't been discussed before, apparently. "The First Three Are Free!" describes the solution. What I refer to is permitting anyone in the U.S. (such as you, me and General Motors) to hire up to 3 employees without any rules or regulations governing the relationship. The employee wo uld go to the U.S. Post Office for servicing (for withholding taxes, reports, disability insurance and whatever) instead of taking the valuable time of the 1- to 3-person employer. Payments made to the 1-3 employees would include all taxes, which would t hen be paid by the employee, and the small business employer (up to 3 employees) would never be behind on payroll taxes or reports. Obviously, many of the 1-3 employees would not be earning large amounts because they would be more like apprentices, and th ere would be no loss to the treasury, but there would be a gain to the small business employer who no longer would waste his/her valuable time with paperwork and unpaid taxes.

These 3 employees would not be subject to any minimum wage requirements, enabling the employer (as to the first 0-3 employees) to pay nothing, less than minimum, the minimum, or more than the minimum. This would create a flexibility for small business to hire persons for apprenticeships without having to pay such persons more than they are worth. The effect of such legislation enabling this proposal would be the opening up of millions of new jobs, many of which would be valuable training programs with small business, which would create many more small businesses and entrepreneurs. Also, this would solve the "nannygate" problem by eliminating the reporting requirement as to most persons (since the workers would presumably fall within the 1-3 exemption).

If you coupled this with a proposal by me for curing the welfare problem through auctions, to enable the free market, through an auction system, to bid for the amount of money they (require) to take one person off of welfare (at the bidder's expense), and payment (such as $25,000 to the winning bidder) being made only after the welfare recipient is gainfully employed (and off of welfare), you would have the start of a massive, national apprenticeship program for welfare recipients, unemployeds and underem ployed persons, by use of free market principles.

Very truly yours,

/s/ Carl E. Person

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