by Michael Schuyler
Tax Foundation
February 21, 2013
Postmaster General Patrick Donahoe surprised the nation last week when he announced that the U.S. Postal Service would move to five-day-a-week letter delivery starting in August. The Postal Service’s financial imbalances are so pronounced that the estimated $2 billion of yearly savings from eliminating Saturday letter delivery would not be enough to solve them. Still, it would make a substantial dent. An important caution is that while Congress needs to help by passing postal reform legislation, not every congressional bill would be desirable. Postal reform would be set back and mail users and taxpayers endangered if Congress were to enact legislation that tried to maintain the status quo by further restricting the Postal Service’s ability to manage its operational costs or by temporarily hiding the agency’s expenses. Regardless of whether one agrees with the Postal Service’s proposal, the federal entity merits praise for acknowledging it has problems and attempting to resolve them sooner rather than later.
