A 2015 study says that tax exempt churches in the United States are costing its citizens $71 billion each year in tax breaks. USPS’s pension obligations remain about $21 billion short of full funding. From the early 1970s through the turn of the century, the agency frequently broke even. “Customs is allowing USPS to dodge more than a billion dollars in duties and it's costing taxpayers money.” Retired postal workers participate in federal pension programs and receive health benefits. Meanwhile, customers, particularly in rural areas, grouse about service reductions. ... business is costing taxpayers … The agency has reduced its staff count, mostly by not replacing retirees, and has trimmed the number of post offices. There is little evidence that the Postal Service can turn its finances around on its own. The 'unfair advantage' amounts to … Postal Service ® money orders are affordable, widely accepted, and never expire. Unlike other federal agencies, the Postal Service isn't funded by taxpayers, and is intended to function like a private business. GAO: Timely mail delivery takes back seat, Biden’s bungled response to COVID-19 reveals Democrats’ shiftiness, States must stand up to feds to stop poaching of their power, Biden’s stumbling, bumbling first steps on COVID-19 expose his weak, feeble plan. “I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. In the coming weeks, the postal service will close its fiscal year by marking 20 straight quarters of massive financial losses. It’s as though the agency does not even care to track helpful data that could inform its pricing — and possibly shore up its finances. And as my colleague David Williams, president of the Taxpayers Protection Alliance, lamented a year ago, all of the USPS’ new ventures are merely deflections that amount to “re-arranging the deck chairs on the Titanic.”. And those stamps add up: The Postal Service has annual revenue of nearly $70 billion. here for reprint permission, Democrats question election results: ‘We just trust the machines, and we shouldn’t’, Governors move to bring National Guard home after troops treated like ‘servants’. It has lost $65 billion over the last 11 fiscal years. On a typical day, our 634,000 employees physically deliver 493 million mail pieces to 159 million delivery points.”. 1212 New York Ave. And most recently: “I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Whether the 116th Congress will take up postal reform is far from clear. It is very difficult to stay in business when costs exceed revenues. For U.S. This is exactly what has been happening to the Postal Service for years. Given that the USPS doesn’t receive any tax dollars from Congress, how will it come up with the extra $2 billion? Running an enterprise of this scale necessitates borrowing money to invest in new equipment and technologies. The Postal Service receives NO tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. In testimony before the committee on April 5, 2011, APWU President Cliff Guffey pointed out: “This hearing is costing more in tax dollars than the Postal service gets in tax dollars.” Guffey was intent on demolishing the myth — frequently promoted by Rep. Issa —that the USPS relies on taxpayer support and will soon be in need of a bailout. here for reprint permission. Thus, the agency’s compensation costs rose $2 billion since 2015. Copyright © 2021 The Washington Times, LLC. But it has in recent years failed to pay towards its retiree health benefits obligations. This creates a $6.5 billion annual shortfall that could easily be avoided.” Last year, the U.S. Source: The R Street Institute from USPS annual report data. The U.S. The president reinforces his assessment that Amazon’s business is costing taxpayers “many billions of dollars” through subsidized rates at the United States Post Office. Shipping industry watcher and money manager Josh Sandbulte thinks there’s an ugly underside to the USPS-Amazon collaboration. When sending money by mail, use money orders as a safe alternative to cash and personal checks. Postal Service (USPS) has been caught in a lie. The Postal Service’s increased focus on its for-profit shipping service actually cost a ridiculous amount. ), Chart 2. Your money order receipt will help you track your payment and show proof of value in case the money order gets lost, stolen, or damaged. USPS’s Total Debt Is Immense ($Billions). Postal Service (USPS) ran a deficit of $3.9 billion. Tulsi Gabbard slams 'dangerous' domestic terrorism bill 'targeting of almost half the country' Map facts One day Even the USPS Inspector General seems confused about its core function, more regularly tending to the Postal Service’s latest business gimmicks than behaving like an actual watchdog. USPS can’t borrow on the open market, so it has had to limit [7] its infrastructure investments. This is a crisis for an agency whose business model all but ensures that its costs will rise annually. (E.g., USPS must deliver to more addresses every year. Now is the time to get back to basics and stop playing games that waste taxpayers’ money and harm private enterprise. Still, USPS has 500,000 employees and 600,000 retirees who receive health and pension benefits. and View Comments, Terms of Use / Privacy Policy / Manage Newsletters, - EXCLUSIVE: Biden's order to halt border wall construction is likely illegal, experts say. Sending Money Orders . And they certainly have not done what they should to stop the market abuse at hand. Only Congress can rescue the agency. Postal Service could cost Amazon more than $1 billion in 2019, according to Credit Suisse. Thursday, October 29, 2015, EXCLUSIVE: Biden's order to halt border wall construction is likely illegal, experts say, ‘Victory smoke in the Capitol, boys’: Affidavits reveal Capitol rioters trail of videos, media posts. Chart 4. The Postal Service has a total debt of around $120 billion, according to the Government Accountability Office (GAO). Chart 3. A FAIR study in 2017 found illegal immigrants are a net consumer of taxpayer benefits worth more than $100 billion a year, not including the cost of enforcing the border. The Postal Service, unfortunately, has been at or near its credit limit for years, and much of that borrowing went to cover ongoing operating costs. Mail Volume Is Down and Not Coming Back (Billions of pieces). All this red ink has flowed despite USPS’s aggressive move [1] into the parcel delivery business. It turns out the U.S. New leaders at the USPS Board of Governors and the Postal Regulatory Commission have failed to implement any tangible changes to stop the bleeding at the USPS. These five charts depict the immensity of USPS’s financial challenges. According to its FY2018 Annual Report to Congress, it operates [6] “34,700 Post Offices and [has] 58,000 retail partners and other access points, more than 232,000 delivery vehicles, and 8,500 pieces of automated processing equipment. How an Unfair Advantage for the Postal Service is Costing Consumers and Taxpayers ... sales tax on fuels, and parking tickets. A September 2015 report from the Government Accountability Office (GAO) found half of all mail in the U.S. goes unchecked for timely delivery. Postal reform is very hard because some stakeholder is inevitably forced to give something up—mailers are loath to swallow large price increases, while postal workers will not accept compensation cuts. The reason the postal service is losing money is because of a congressionally mandated retirement healthcare funding program that no other government agency is required to observe. Many of them were already transitioning from paper mail to electronic correspondence, and the financial crisis increased their incentive to bail from mail. Unfortunately, losses are the rule rather than the exception for the agency. In order to preserve and strengthen the constitutionally mandated Postal Service, an agency that receives no taxpayer money, we respectfully request you vote in favor of the USPS Fairness Act (H.R. USPS has a substantial … USPS reports [4] that it expects costs to continue to rise: “Compensation and benefits expenses are planned to increase by $1.1 billion in FY2019, due to wage increases by $0.6 billion resulting from contractual general increases and cost-of-living adjustments.” The agency also expects its transportation and retiree health benefits expenses to increase by $1 billion. Now business customers can calculate the cost of shipping…online! The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. All this red ink has flowed despite USPS’s aggressive move. USPS’s Costs Regularly Outstrip Its Revenues ($Billions). According to the Tax Foundation, USPS has lost $51.7 billion since 2007 alone. USPS’s Retiree Health Benefits Will Go Bankrupt. Last year, the U.S. While the USPS has been busy improperly shifting resources from its federally mandated mail-delivery services to its shady side business of competing against private companies in the courier delivery service industry, it has all but ignored its actual job of delivering the mail. Biden faces pressure to aim higher in COVID-19 vaccine goals, ‘Many options’: Democrats eye 14th Amendment as impeachment alternative, Industry, unions warn of job losses as Biden freezes drilling permits on federal lands, Doctor: “Doing This Every Morning Can Snap Back Sagging Skin (No Creams Needed)”, Sen. Bernie Sanders: Democrats face 2022 wipeout without bold action, Arizona GOP censures Trump foes Gov. The postal service has lost money for 11 straight years, mostly because of pension and health care costs. Chart 1. Amazon should pay these costs (plus) and … It turns out the U.S. N.W., Suite 900 The Postal Service has failed to deliver for American taxpayers, and the Customs Service is looking the other way,” stated CAGW Senior Vice President Leslie Paige at a news conference in Washington. [1] into the parcel delivery business. Postal Service (USPS) has been caught in a … No accounting method can fix woeful performance for letter delivery or inept leadership. Chart 5. According to the Secular Policy Institute, religious groups receive $35.3 billions in federal income tax subsidies and $26.2 billion in property tax credits. All of this occurs against the backdrop of well-documented financial troubles and a series of highly questionable business ventures. “Quality delivery performance information is needed for USPS and postal stakeholders such as [Postal Regulatory Commission], Congress, business mailers and the general public to develop useful analysis that can help oversee or assess the balance between USPS’s cost-cutting to address its poor financial situation while maintaining affordable postal rates and providing timely, universal delivery service,” the GAO report said. A recent analysis proved that the postal service failed to attribute more than $2.5 billion to competitive services – essentially hiding the tax dollars it was using to compete against private businesses. Rising mail volume and a monopoly on high-margin letter delivery brought in tens of billions of dollars annually. Quiz: Can you name these 1950s songs from their lyrics. Retail Calculator; Business Calculator; New Business Calculator; Customs Form Indicator; Country Max Limits and Price Groups; Zone Chart; Pricing . Postal Service (USPS) ran a deficit of $3.9 billion. And that puts the lie to Trump’s claim that the cost of the Postal Service’s alleged sweetheart deal with Amazon.com is ultimately “bourne [sic] … Unfortunately, losses are the rule rather than the exception for the agency. 1. Parler’s freedom from censorship comes at cost of users’ privacy, Quiz: Take the political scandals in U.S. history test, ‘We’re fighters here’: PragerU fights Big Tech’s ‘cancel culture and the mob’, 'New Cold War': Chinese president issues stark warning to Biden, Tulsi Gabbard slams 'dangerous' domestic terrorism bill 'targeting of almost half the country', Click THEY LOSE A FORTUNE, and this will be changed.\" Simply fill in the blanks, and let our online calculator figure out your postage. U.S. The Postal Service presently does have $10 billion in cash, so it certainly can minimally service its debt. Chart 1. The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. PRESIDENT DONALD TRUMP: The post office is losing billions of dollars, and the taxpayers are paying for that money because it delivers packages for Amazon at a very below cost. The Postal Service was designed to be a self-funding agency. Rather than shift more taxpayer money to stay afloat, the USPS should stick to delivering mail and fulfilling its obligations. That is an immense sum, particularly for an organization that shows little capacity to generate the revenues required to fund itself. Click Postal Service projects a deficit of up to $2 billion this year. 'New Cold War': Chinese president issues stark warning to Biden Quiz: US Citizenship Test - Could You Pass? These five charts depict the immensity of USPS’s financial challenges. From weighing in on a potential foray into banking, to a $500 million overhaul of its truck fleet, the USPS IG offers far more tips than critiques. A first-class stamp will currently cost you 50 cents. Zero tax dollars used. Click to Read More The Postal Service reported a loss of $2.7 billion for the fiscal year that ended Sept. 30. DREW JOHNSON: Postal service lies cost taxpayers billions - Washington Times. Ducey, Cindy McCain, ex-Sen. Flake, Sidney Powell, pro-Trump lawyer, forms Restore the Republic super PAC, Boebert bill to block Paris climate agreement reignites Senate ratification debate, One if by land, two if by sea: US Navy's Amphibious Ready Group, Vogue bows to critics of its panned Kamala Harris cover, preps replacement for ‘historic moment’, Whitmer slammed for attending inauguration while Michigan dining rooms remain closed. -- CNNMoney's Jennifer Liberto contributed to this story. 2382) in the coming days. Source: Government Accountability Office, Continuing Financial Challenges and the Need for Postal Reform, GAO-16-651T. USPS’s Credit Line Is Nearly Tapped ($Billions), USPS is a massive enterprise. Postal Service media resources, including broadcast-quality video and audio and photo stills, visit the USPS Newsroom . The proposed uptick in shipping and mailing fees at the U.S. Its delivery fleet, for example, was mostly manufactured between 1987 and 2001 [8], and is prone to breakdowns and expensive repairs. Price Charts HTML; Price Charts PDF; Postal Explorer What is certain, however, is that absent a fundamental refashioning of the Postal Service, U.S. taxpayers will have to bail the agency out one day. Source: Government Accountability Office, “Unsustainable Finances Need to Be Addressed,” GAO-18-602. The Postal Service is a government agency, but it operates as an independent business without direct taxpayer support. Claim: \"Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. Using the same data for a February 2019 report, the Washington Post estimated Trump's trips to Mar-a-Lago alone cost the U.S. taxpayer approximately $64 million during his first two years in … And no legislator or president wants that to occur on his watch. Quiz: Can you pass a Washington, D.C. history test? The burden will fall on the House’s Oversight and Government Reform Committee and the Senate’s Homeland Security Committee. Washington, D.C. 20005, Good Ideas that Might Find Favor In a New Era, As the virus spikes again, here are narrow regulatory reforms that can expand access to care. - TOP STORIES “I am right about Amazon costing the United States Post Office massive amounts of money … Under a … Locate a Post Office; ZIP Code Lookup; Service Commitments; International . Determining the cost of shipping domestically is now made easy. Mail volume dropped more than a quarter, and has not rebounded. The Postal Service is at the core of the $1.4 trillion United States mailing industry that employs more than 7.5 million people. In 2017, the service lost $800 million on $69.7 billion operating revenue. 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