Thursday, September 24, 2009

Four billion bailout for the Post Office?

According to Politico:
As adopted, the postal agency, which now faces a liability of $5.4 billion due Sept. 30, would have to pay only $1.4 billion and would be allowed to effectively defer the remaining $4 billion until after 2017.

“That’s good news” said a Postal Service spokesman, who argued the arrangement posed no risk for the taxpayer since the retirement fund holds $32 billion at this time. Nonetheless, critics argued the $4 billion will now be added as a potential cost on the government’s books given the fragile state of the Postal Service, and the whole handling of the issue is seen by many as a parliamentary sleight-of-hand.

In other words, while the Democrats argue that the government can run health care less expensively and more efficiently than the private sector, they are essentially proposing a four billion dollar bailout for the Post Office!

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