For Immediate Release Contact: Jim Morrell
Mailing Industry Responds to President Obama’s
Washington, DC – In response to President Obama’s deficit reduction plan, which includes provisions to reform the U.S. Postal Service, Coalition for a 21st Century Postal Service coordinator Art Sackler today released the following statement:
“We commend the President for getting involved in the debate over the future of the Postal Service, which will impact 8 million private sector jobs. We will carefully study the impacts of this proposal, but at first glance it contains some helpful provisions while also containing some that would do more harm to the Postal Service and the mailing industry.
“Unfortunately, the plan would allow the Postal Service to increase postage rates faster than the rate of inflation. Instead of preventing the demise of the Postal Service, raising postage rates would only hasten it; as postal customers would seek other, less expensive avenues to communicate. When a business is already losing customers, the last thing it should do is increase its prices.
“At the same time, we appreciate the President’s addressing the issue of the Postal Service’s Congressionally-mandated overpayments into retiree health care and pension accounts. For years, the Postal Service has been unfairly required to direct postage revenues into these funds. This has amounted to a hidden tax on the mailing industry, and one that needs to be abolished. That money should be returned to the Postal Service.”
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