Tag Archives: postal

Business/Economics, U.S.

Government Incompetence, What Economic Recovery? IRS fails to refund millions in taxes, blames postal addresses. Part of scheme to shut down U.S. Postal Service?

There are reports that the tax collector of the U.S. government, the Internal Revenue Service (IRS), is holding back on refunding $153 million in overpaid taxes!

IRS officials claim it’s because of postal addresses they just don’t trust.  So they’re not going to mail them out!  99,123 U.S. taxpayers are waiting for those refunds!

Here’s the sinister answer the IRS has for solving the ‘problem’: Everyone needs to stop using the postal system and use direct deposit!

To check the status of your tax refund click on the “Where’s My Refund” at the IRS website.

Business/Economics, U.S.

Government Incompetence, What Economic Recovery? Reports say Congress will let Postal Service default on December 16

“It feels like Helena and Cosby are caught in the cross hairs. There is a big battle going on and we are the ones that are going to suffer.”-Marianne Price, Montana resident who relies on the U.S. Postal Service

Recently, the President of the National Association of Letter Carriers, Fred Rolando, said certain actions by Congress, or lack of action, could put the USPS into a “…death spiral…”.

A CNN Money report says political analysts have reason to believe the U.S. Congress will not consider any more bills to save the U.S. Postal Service, until after the 2012 elections.  That guarantees the USPS will default.

The U.S. Postal Service, which does not use taxpayer money to operate, employes 557,000 people directly.  Several companies, like FedEx, also provide service under contract.  South eastern Idaho postal workers told me that if the USPS defaults, at least 200,000 postal workers will immediately lose their jobs!  It will also mean cut backs for those contractors working for the Postal Service.

The USPS is actually a contractor itself.  Under President Richard Nixon today’s Postal Service was created (it was the Postal Department before then).  The Postal Service operates on money that comes from you and me buying postal products (not taxes).  Under President Ronald Reagan stamps were added to the list of products the Postal Service could make money from (before that the government got the money from stamp sales).  The only tax money used for postal services are for mail for the blind, for mail in election ballots sent from U.S. citizens living overseas, and, for providing address information to state and local child support enforcement agencies.

For reasons not publicly known, some elected officials, and the main stream media, are misleading the public into thinking that cuts to the USPS would save taxpayer money. It won’t!

A Cornell University professor says the U.S. Congress is fully to blame (as I’ve stated in past postings): “A lot of these decisions are fundamental business decisions about quality and frequency of service, and they should be in the hands of the executives running the Postal Service. But Congress won’t let them do that!”-Richard Geddes, Cornell University associate professor

While many officials blame the Postal Service management and the unions, the fact is that USPS management and unions have been working together to make drastic cuts. Their latest agreement could cut $20 billion in postal worker health care benefits, but Congress has to sign off on it.

Just a couple of weeks ago, President Barack Obama extended the deadline for default by the U.S. Postal Service.  The new deadline is December 16.  If the CNN Money sources are right, then bye bye USPS (unless Obama just keeps extending the deadline)!

Business/Economics, U.S.

Republican & Media Incompetence: California Republican Darrell Issa, and some mainstream media sources, say the Postal Service gets money from tax payers. Idiots!!!

“The Postal Service still seems to hold the misguided belief that accounting gimmicks and an increased reliance on taxpayer support will give it flexibility to push back insolvency for a few more years.”-Darrel Issa, Republican Representative from California

California Republican Darrel Issa has just revealed himself to be a liar or an idiot!

First off: Postal officials have been straight forward with their financial mess.  And most of that mess has been caused by Congress!!!  Read my September posting of the PBS interview with the Postmaster General, and the president of the National Association of Letter Carriers union.

Secondly: The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!!!

Darrel Issa is a California Republican, yet he doesn’t know that two other California Republicans pushed for the USPS to become self supporting?  Yeah, those guys were Richard Nixon and Ronald Reagan!!!

In 1970, under Nixon the Postal Reorganization Act was passed and signed into law.  This act ceased tax payer funding for the USPS (prior to the Reorganization Act it was known as the Postal Department), and forced it to become self supporting (although it does not have to make a profit).

In 1982, under Reagan, another act was passed and signed that added U.S. postage stamps to the “postal products” that the USPS could support itself with (until then the Government took all the money from sales of stamps).

Perhaps Darrel Issa is talking about the “Postal Service Fund”?  This is a fund set up by Congress, paid for with taxes, to cover the postage free mailing for all legally blind persons, and for mail in election ballots sent from U.S. citizens living overseas, and, for providing address information to state and local child support enforcement agencies.  It does not cover any other operations of the USPS!

Perhaps Darrel Issa wants to end the free mailings for blind people, for absentee election ballots, and for providing addresses to state and local child support agencies?

Whatever the reason, this is a clear case of politicians, and the media, of being incompetent, or intentionally misleading the general public.

 

Business/Economics, U.S.

What Economic Recovery? Postmaster General says Draconian cuts needed for self supporting U.S. Postal Service

“Both bills have elements that delay tough decisions and impose greater constraints on our business model.”-Patrick Donahoe, Postmaster General of the United States

The Postmaster General was referring to bills proposed by the U.S. Congress.  He’s still pushing for the more drastic changes he wants, like ended Saturday deliveries, and laying off more employees than proposed by the Congressional bills.

The biggest postal union, the National Association of Letter Carriers, says it’s close to a cost cutting deal with the Postmaster General.

The USPS is dealing with a 20% drop in letter business, just for this year.  Also, Congress created rules that forced the self supporting USPS to pay into Federal retirement programs.  The payments stolen by Congress, I mean, paid in advance, amounted to a decade’s worth of retirement fund payments.  So far Congress has refused to refund the over payments, although their proposed bills would give some money back, but only for use to buy out thousands of Postal workers.

When Postmaster General Donahoe talks about a “business model” he’s referring to the fact that in the 1980s Congress forced the USPS to become self supporting, meaning no more tax payer support.  The plan meant for the USPS to operate as a private business, so far Congress has actually interfered with that.

Whether Congress gets its way, or the Postmaster General, the result will be thousands more people unemployed.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!

 

Business/Economics, U.S.

Rage against the System: U.S. Postal Workers finally standing up, protesting U.S. Congress created postal crisis!

I stated in earlier postings that the U.S. Congress is behind the USPS crisis!  Now postal workers, risking job loss, are protesting the actions of Congress in destroying the Postal Service.

Recently, PBS Newshour’s interviewed U.S. postmaster general, Patrick Donahoe, and Fredric Rolando, president of the National Association of Letter Carriers.  They both pointed out that the U.S. Congress is holding back on money earned by the USPS, and that was a primary reason the Postal Service is in trouble.

Also, U.S. Congressman, and the main stream media, continue the false notion that the USPS gets money from taxpayers, and therefore cutting the USPS would help the government’s budget cuts.  Many citizens still believe that the USPS is paid by tax money!

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!

Now members of all five unions representing postal workers will go on strike, violating their contracts (to be safe the postal unions are not calling them strikes, they’re calling them “rallies”).  Why violate their contracts? Why not?  It’s become obvious that the U.S. Congress wants to shut them down anyway!

Congress is demanding that USPS make another $5.5 billion in payments to Congress (supposedly to meet required Federal benefits).  But this is what’s causing the problems.  Last year Congress overcharged the USPS, then refused to give a refund!

One union official says the U.S. Congress has actually overcharged the USPS to the equivalent of 75 years worth of Federal retirement plan contributions.  This leads me to believe the Congress is using the non-taxpayer Postal Service funds to pay for running a broke government!

 

 

Business/Economics, U.S.

What Economic Recovery? Is the U.S. Congress stealing U.S. Postal Service money?

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge.  The U.S. Congress controls what the USPS can charge, and, according to testimonies by the U.S. postmaster general, Patrick Donahoe, and Fredric Rolando, president of the National Association of Letter Carriers, the U.S. Congress has forced the USPS to over pay into several federal funds.

Remember, the money made by the USPS does not come from taxes, and yet they’re being forced to over pay into federal funds.

Postmaster Donahoe has asked Congress to refund the over payments and they refused!  Congress is also refusing to allow the USPS access to it’s own money in the other funds.  Why?  Can it be that the U.S. Congress is using the non taxpayer Postal funds to pay for the day to day operations of the Congress?  Afterall, the U.S. government is broke, and they sure haven’t had any problems stealing from the taxpayer funded Social Security accounts!!!

Business/Economics, U.S.

What Economic Recovery? U.S. Congress wants to shut down U.S. Postal Service, why else are they restricting USPS access to their hard earned money? 9 million jobs lost?

September 6, PBS Newshour’s Gwen Ifill interviewed U.S. postmaster general, Patrick Donahoe, and Fredric Rolando, president of the National Association of Letter Carriers.  They both pointed out that the U.S. Congress is holding back on money earned by the USPS, and that was a primary reason the Postal Service is in trouble.

FREDRIC ROLANDO: “I’m here to tell you that the Postal Service is not broke. The Postal Service just needs access to its own money. And Congress needs to get busy and give them that access.”

“The $20 billion-plus dollars that you read about in losses is nothing more than a congressional mandate that requires the Postal Service, required the Postal Service to take all of their cash and put it into a pre-funding account.”

“The Postal Service actually has somewhere between $50 billion and $125 billion in their other funds that is not taxpayer money. They haven’t used a dime of taxpayer money in over 30 years! And the Congress just needs to act responsibly and quickly to give them access to that — those funds.”

PATRICK DONAHOE: “Fred is exactly right around the issues that we have faced in the last few years.”

“In that same time, we have been required [by Congress] to prepay employee retirement funding.”

GWEN IFILL: “What does Congress have to do with that? When you say that Congress needs to make changes to get you access to this cash, what can Congress do?”

PATRICK DONAHOE: “There are two proposals on the table, the one Fred referred to, where we would get money back. The other proposal is the Postal Service taking over our own retirement system, operate it just like a private business. And we would no longer need that pre-funding.”

“…we have overpaid [forced by Congress] into our other retirement fund $6.9 billion. We want all that money back right now.”

FREDRIC ROLANDO: “What Congress needs to do is give the Postal Service access to, like I said, between $50 billion and $125 billion…”

“There’s $50 billion to $75 billion in surplus pension funds. There’s about $42 billion in the future retiree health benefit funds, again, all postal funds, no taxpayer money involved.”

“…this is just cash money that the Postal Service needs access to. We’re not looking to in any way diminish what needs to be done for future pensions or future retirees.  It’s just that you don’t have to do 75 years worth of pre-funding in a 10-year period. You could re-amortize what needs to be done.”

“…because any business wouldn’t put $20 billion of cash into future pre-funding, nor would they leave $50 billion to $75 billion of pension surplus in that account, when they’re going through the transition that the Postal Service is going through right now.”

“If Congress doesn’t act, the postal industry, about nine million jobs are in danger…”

PATRICK DONAHOE: “We will be out of cash next August. That’s the issue.”

 

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt.

Business/Economics, International, U.S.

What Economic Recovery? U.S. Postal Service problems having domino effect on Corporate America

Some people don’t think much of the USPS (United States Postal Service), many people, including main stream journalists, don’t know that the USPS does not get any taxpayer money!  How about the fact that dozens of U.S. and European corporations rely on the USPS for business?

I’m not talking about shipping their products.  Corporations actually have major contracts to provide the USPS with products or services.  Now they’re feeling the pinch of the collapsing USPS budget.

Here’s a list of major companies being directly affected by the problems at the USPS: Fed Ex, Siemens, Northrop Grumman, Pat Salmon & Sons and Campbell-Ewald, to name a few.

Fed Ex is the biggest contractor with the USPS, in 2010 they were paid $1.4 billion for their service to the USPS (that’s only 3.5% of Fed Ex’s total revenue): “FedEx values its alliance relationship with USPS, both as a supplier and a customer.”-Maury Donahue, FedEx spokeswoman

Northrop Grumman made $495 million off their USPS contract.

The German company Siemens made $135 million in 2010: “We’re affected by their budget and their spending, It causes us to react and adjust.”-Daryl Dulaney, CEO of the Siemens Industry division New York

Siemens was involved with mail processing equipment, until this recent announcement by the USPS: “…will not be buying mail processing equipment, period.”-Sue Brennan, USPS spokeswoman

Privately held Pat Salmon & Sons trucking made $143 million in 2010.

Shipping contractors, like Fed Ex and Pat Salmon, have been hit hardest by the USPS budget crisis.  According to David Hendel, with postal contracting specialist Husch Blackwell LLP, the USPS is asking truckers to essentially work for half pay: “If the contractor will not agree to this, the Postal Service is threatening to terminate their contract.”

The only company that seems to be making more money off the USPS budget crisis, is advertiser Campbell-Ewald. The USPS has poured money into an advertising campaign trying to promote their service.

Basically the U.S. Postal Service wants to end Saturday mail delivery, cut 220,000 jobs by 2015 and close at least 3,700 post offices.  As you can see the cuts will affect far more than just Postal employees and customers.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt.

 

Business/Economics, U.S.

What Economic Recovery? U.S. Postal Service will default, begs to stop Saturday delivery

USPS announced they will default on the upcoming Federal Employees Retirement System payment (this after Congress essentially stole $75 billion from the Postal Service, supposedly to pay the FERS last year!).

Also, postal officials are now begging the U.S. Congress to approve the ending of Saturday delivery.  USPS officials also want to use retirement money to run daily operations.

Officials also say they will unveil a plan on September 15,  which could save up to $3 billion per year.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt.

 

Business/Economics, Idaho, U.S.

Idaho to see local Post Offices shut down

The United States Postal Service released a list of nearly 3,700 post offices that could be shut down.  Many post offices in Idaho are on the list.

The list of cities where post offices could be shut down are: Ahsahka, Almo, Arbon, Avery, Boise, Calder, Chester, Clayton, Desmet, Ellis, Geneva, Hamer, Harvard, Howe, Monteview, Moscow, Ola, Parker, Pocatello, Swanlake, Tensed, Weston and Yellow Pine.

The USPS says it will also consider replacing some of the post offices with “Village Post Offices”.  These would be contracted offices run by existing local businesses.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge, and other products they sell.