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Stamp Price Increasing One Cent For USPS Approved By Regulators

Stamp Price Increasing One Cent For USPS Approved By Regulators

The Postal Regulatory Commission approve the stamp price increasing by one cent for the United States Postal Service (USPS). As previously reported by The Inquisitr, the USPS had previously announced the possibility of a one cent raise back in October. The postal rate increases by Congress will pave the way for the USPS to begin tackling its record-breaking losses.

According to The Hill, the USPS will raise the cost of sending a first-class letter to 46 cents and a postcard to 33 cents, both up a penny. A new global “forever” stamp will allow customers to mail letters anywhere in the world for one set price of $1.10. The international rates currently vary so that means the prices will actually be going up for some nations, like Canada and Mexico.

Priority Mail will increase to $5.80 for a small box, $12.35 for a medium, and $16.85 for a large box. Regular envelopes for priority mail will increase to $5.60, with a legal-sized envelope costing $5.75. Finally, a padded envelope will cost $5.95.

The USPS has been failing for years to make a profit. The Postal Service announced this past week that it lost a record $15.9 billion in fiscal 2012, which ended September 30th. The USPS is currently not allowed to raise stamp prices faster than the inflation rate, so that is why it had to wait on Congress for approval. In order to stay afloat the USPS has been borrowing money from Congress, but it has defaulted on some of its loans.

Congress claims it will attempt to address the larger problems with the USPS but they are currently very busy attempting to avoid the fiscal cliff. Some have blamed the USPS’ financial woes on the Postal Accountability and Enhancement Act of 2006, which requires that pensions be funded 75 years in advance.

Ralph Nader has suggested that Congress get rid of this requirement:

“By June 2011, the USPS saw a total net deficit of $19.5 billion, $12.7 billion of which was borrowed money from Treasury (leaving just $2.3 billion left until the USPS hits its statutory borrowing limit of $15 billion). This $19.5 billion deficit almost exactly matches the $20.95 billion the USPS made in prepayments to the fund for future retiree health care benefits by June 2011. If the prepayments required under PAEA were never enacted into law, the USPS would not have a net deficiency of nearly $20 billion, but instead be in the black by at least $1.5 billion.”

The stamp price increasing, along with all the other mail rate increasing, will only put a small dent in the mail agency’s financial losses. What do you think about the USPS increasing the prices of stamps and other mail?

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Comments

8 Responses to “Stamp Price Increasing One Cent For USPS Approved By Regulators”

  1. Anonymous

    Seriously, do they (Government) really think that by rasing the cost of a stamp will help there fiscal delema?

  2. Oleta Reed

    Give the employes a cut in the big wages they make and give us poor people a break!

  3. Anonymous

    The more they raise the rates, the more people will pay online. All the USPS is doing is shooting itself in the foot. Get rid of all the unnecessary upper management, cut pensions of current employees, stay open longer at lunchtime and on Sat. when working people can actually get to the PO to do business. Ours is closed for 2 hrs. over lunch and closes at 11 am on Sat. Hard to get there when working 60+ hrs. a week!

  4. Colleen Eckman

    what people dont realize is that the Postal Service is maintained strictly by the stamps and products they sell. NOT TAXES. although the Government still controls how they run. money problems are everywhere right now but with the government forcing the Postal Service to fund future pensions, 75 years in advance (the only agency forced to do so) is putting them in the hole. also I think they should just raise the price of stamps to .50 and forget this penny here and penny there stuff. BUT the PO is a type of non profit organization which forbids any, so called, profit.

  5. Greling Jackson

    Cut pensions? Ah, but you are unaware… Congress is making them pre-fund pensions for employees that don't even exist yet.

    There is more to this than meets the eye.