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News Link • Government

Can the Postal Service be Saved?

• CBS News
The quasi-government agency announced this week that it lost $3.8 billion in the most recent fiscal year, which ended September 30th. It also delivered less mail - 26 billion fewer pieces less, a nearly 13 percent drop from the previous year. The bad news follows losses totaling $7.8 billion in 2007 and 2008.
The Postal Service, as it is quick to point out, is legally prohibited from taking tax dollars. But in order to stay afloat, the agency has been actively borrowing from the U.S. Treasury: At last count, according to Postal Service spokeswoman Yvonne Yoerger, it owes the government $10.2 billion. 

3 Comments in Response to

Comment by Jean Carbonneau
Entered on:

 The PO always says it doesn't receive any handouts from the guvernment.  It's a lie.  They receive both direct and indirect subsidies.  They still receive a subsidy called "revenue foregone", which was a payment the PO would receive which would make up the difference between first class rates users, and bulk mail users.  It's small, but it's still received.  Check the most recent financial statements on

Also they receive huge indirect subsidies such as non-payment of states sales taxes on the stamps, shipping supplies, and now greeting cards that are sold.  They also receive a huge subsidy in that they don't have to register the vehicles used to deliver mail, and they receive below market rates when borrowing from the Treasury.  This, and with the monopoly, and they are still bleeding red.

The solution is simple.  END THE MONOPOLY!!!  It's that easy. 

Comment by Anonymous
Entered on:

Tis not a question of 'can' - the Postal Service will become obsolete as our communications technologies grow (unless Man has a melt-down).

Comment by Lola Flores
Entered on:

 How can the postal service be prohibited from taking tax dollars when it is a federal agency just like Medicare or Social Security?  Which means that, by definition, they operate on tax dollars.

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