Probably the only thing keeping the postal service afloat right now is Amazon. And pretty sure I pay sales tax on purchases through amazon if purchased from amazon.
Probably the only thing keeping the postal service afloat right now is Amazon. And pretty sure I pay sales tax on purchases through amazon if purchased from amazon.
1. The post office runs a deficit of about $5 billion per year when you include their retirement funding requirements, so in a very strong sense they are undercharging for delivery or overpaying for retirement. Either way, the taxpayers in general are supporting delivery instead of the deliverer/deliveree. 2. There is no federal government sales tax, of which Trump is the chief executive. From his department's point of view, Amazon pays little tax. Your local state/city/county government gets the sales taxes
The Postal Service has a mandate to pre-fund their retirement program, mandated by Congress. [usps.com] This is where the deficit comes from. This is something no other government or private entity is forced to do. Do you think FedEx is pre-funding their retirement programs?
Not only that, but when they prepaid several billion more than they needed to (thanks to complying to changing rules forcing different payment schedules) they not only don't get the money back, but they cannot even apply those as prepayments to the pension fund. That money may as well have not existed.
Postal Service (Score:1)
Probably the only thing keeping the postal service afloat right now is Amazon. And pretty sure I pay sales tax on purchases through amazon if purchased from amazon.
Re: (Score:2, Informative)
Probably the only thing keeping the postal service afloat right now is Amazon. And pretty sure I pay sales tax on purchases through amazon if purchased from amazon.
1. The post office runs a deficit of about $5 billion per year when you include their retirement funding requirements, so in a very strong sense they are undercharging for delivery or overpaying for retirement. Either way, the taxpayers in general are supporting delivery instead of the deliverer/deliveree.
2. There is no federal government sales tax, of which Trump is the chief executive. From his department's point of view, Amazon pays little tax. Your local state/city/county government gets the sales taxes
Re:Postal Service (Score:5, Informative)
Re: (Score:2)
Not only that, but when they prepaid several billion more than they needed to (thanks to complying to changing rules forcing different payment schedules) they not only don't get the money back, but they cannot even apply those as prepayments to the pension fund. That money may as well have not existed.
Re: (Score:2)
I already noted in my original that including the retirement funding requirement is what pushes the post office into a deficit.