Wednesday, June 29, 2005

Open CRS Network - CRS Reports for the People: Postal Reform

"When you control the mail, you control information."
--Newman (Seinfeld)

Can USPS be saved? A recent Congressional research report stated unequivically, "USPS would be bankrupt but for the fact that it is a government entity, with Treasury borrowing rights." Should the Postal Service compete with private industry? From the report.

"There are several components to the argument. One relates to fairness. USPS has many
advantages stemming from its governmental status. It pays no federal, state, or local taxes
on its income, sales, purchases, or property. Unlike private sector companies, it is immune
from most forms of regulation, such as zoning, land use restrictions, motor vehicle
registration, parking tickets, and antitrust. It is also able to borrow money at the lowest
possible rate because it does so through the U.S. Treasury. Companies facing competition
from USPS argue that these factors put them at a great disadvantage (though they tend to
ignore the statutory constraints and regulation by the PRC that USPS faces)."

Open CRS Network - CRS Reports for the People

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