It Now Costs More To Mail A Letter

44CentStamp_Flag_USPSPostal rates went up Sunday.

Losing $25 million a day, the U.S. Postal Service will increase the price of a first-class stamp to 46 cents Sunday, the sixth hike in eight years.

The mail system suffered a record $15.9 billion loss in 2012, including an $11.1 billion default on payments to the U.S. Treasury.

“We are on an unsustainable financial path,” Postmaster-General Patrick Donahoe told Congress earlier this month.

“The Postal Service shouldn’t have to do business this way.”

It has already cut its budget by $15 billion in recent years while shedding 168,000 jobs, or nearly a quarter of its workforce.

But officials need to save another $6.5 billion a year to reach their goal of becoming profitable by 2015.

The reason the Post Office can’t meet its obligations is because Congress requires it to play 100% of its pensions in advance. Stopping that practice, and having the Post Office conform to every public or private business pension practice, is what could save them.

About Alan

Alan Alan Colmes is the publisher of Liberaland.

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