In the nation’s Capitol, September has effectively been “Reconciliation Month” with a series of conversations in Congress about colossal tax and spend plans. Over this time it has been hard to recall even one day when there haven’t been concerns about draining American engines of commerce in order let the federal government fill the void and drive national debt to new heights.
At the top of the list for Democrats is to raise the corporate tax rate to a whopping 26.5%, while also tacking on new capital-gains tax increases, and more. While lawmakers are eager to level excises on whatever moves and thrives in the US economy, they are also ready subsidize what doesn’t.
For a specific instance, this means forcing a $7.5 billion purchase of electric vehicles onto government agencies. A large contingent of the trucks will be dedicated to the U.S. Postal Service despite the fact that the organization already chose a fleet of vehicles with a deal that it kick-started in February. USPS announced it would buy up to 165,000 trucks at potential cost of $6 billion.
But the Postal Service has much bigger problems that its leadership and Congress are ignoring. The agency already carries $188 billion in unfunded liabilities. Instead of dissecting all the various ways that the federal government can dump more taxpayer money into the Postal Service, a better question is asking honestly, how did the USPS get to this point and what can be done?
Unraveling this matter undoubtedly starts with a general review what kind of business and products the USPS is providing to the American people. Indeed much of the agency’s dealings involves traditional letter mail. USPS delivered 116 billion First-Class and marketing mail pieces in 2020 and its monopoly on this service ensures that volumes will continue indefinitely.