Trump Produces Taskforce to Mend US Postal Service

Trump Produces Taskforce to Mend US Postal Service

For example, Trump's executive order requires the task force to review the definition of the "universal service obligation", which is a loosely defined mandate for the Postal Service to provide affordable service to all customers.

The order doesn't mention the online retail giant by name, but in recent weeks, Trump has made repeated accusations that Amazon is taking advantage of its delivery partnership with the US Postal Service, with taxpayers shouldering the costs.

The order's language will likely encourage the task force to see if USPS can charge companies like Amazon more for parcel delivery, a person who previously worked at the Postal Regulatory Commission said on condition of anonymity.

Treasury Secretary Steven Mnuchin will lead the task force.

"I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy", Trump wrote on Twitter on April 3.

The truth is that reported USPS losses are nearly totally due to the onerous pre-funding requirement that was imposed on the USPS by Congress in 2006 thru the Postal Accountability and Enhancement Act (PAEA).

More news: Bill Gates and Angelina Jolie Top the List Once Again

In the October-December 2017 quarter, the service handled 7% more packages than in the same period a year before, while mail declined about 5%.

Amazon regularly uses the Postal Service to complete what's called the "last mile" of delivery, with letter carriers dropping off packages at some 150 million residences and businesses daily.

So is the postal service getting ripped off? In 2006, Congress mandated that the postal service prepay benefits, a special requirement other agencies do not face.

Since signing a landmark five-year contract in 2013 to deliver packages on Sundays, Amazon and the Postal Service have declared their business relationship a success, although the terms of the contract are confidential. The company does get a discount because of its large volume of packages.

According to FactCheck.org, Trump's claim that every time Amazon delivers a package it "loses one dollar and 47 cents" is not accurate. Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer.

A page on the USPS website listing "The Top 10 Things You Should Know About the U.S. Postal Service" says, "The Postal Service receives NO tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations".

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