GOING POSTAL: How The Republicans Are Bankrupting The Postal Service For Fun And Profit


OP-ED NEWS: The root cause of the financial distress that the Postal Service is going through is overwhelmingly caused by Congressional mandates that were imposed upon the Postal Service. Congress passed the Postal Accountability and Enhancement Act (PAEA), which was signed into law by President G.W. Bush on December 20, 2006. Under the guise of modernizing the Postal Service for the 21st Century, it actually doomed the Postal Service.   If not for the PAEA, the Postal Service would be functioning fine even with the impact of email and the financial collapse of 2008. One of the provisions of the PAEA was to mandate that the Postal Service fully pre-fund future retiree health benefits for the next 75 years, and to do it within a ten-year window.   This means that the Postal Service is required to send to the U. S. Treasury $5.5 billion each September 30.   Remember, this is to pay for the future retirement health benefits of people who haven’t even been born yet.   The Postal Service is the only entity that is mandated by law to do this.   No government agency, corporation or organization is required to fully pre-fund future retirees’ health benefits. But that is not the worst of it. MORE

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