Stamp prices expected to fall on April 10
By Staff Writer
Mar 10, 2016 11:47 PM EST
Mar 10, 2016 11:47 PM EST
The US Postal Service will cut the price of postage, the first time in nearly hundred years. While, the cost of all commodities are rising, the drop in stamp prices surprises consumers. The cost decrease is anticipated to come live on April 10, 2016, nearly seven days before the Tax Day, which falls on April 18, 2016.
But, still there might be some changes in the price cut. Recently, the US Postal Service increased the stamp price by few cents to balance a revenue fall, however, it was a temporary rise. The Postal Service planned to reverse the price rise as soon as surcharges reaches $4.6 billion. The postal department expects to reach this target on April 10, 2016. Forbes noted that the US Postal Service is a self-financed organisation, which does not gain any federal tax amount for operational costs. Congress controls all business activities of the Postal Service.
According to Megan J Brennan, chief executive officer and postmaster general, trimming stamp prices and removing surcharges will leave the financial condition of Postal Service in a gloomy situation. Moreover, reducing postage prices minus surcharges will impact the future of Postal Service. The congress might step in to extend the stamp price hike, which is linked to inflation. However, congress remains silent with regard to the price increase extension.
If the congress continues to remain quiet, the prices for stamps will change as follows: letters (1 oz.) will be priced at 47 cents instead of 49 cents from April 10, while the prices for letters (additional oz.) will fall to 21 cents from the current price of 22 cents and international letters will cost $1.15, down from the present cost of $1.20. The prices for postcards will change to 34 cents, compared to current price of 35 cents.
In 2014, the Postal Service increased the stamp price to 50 cents from 47 cents. Megan is worried about the price reduction as this would push the Postal Service to a loss of $2 billion annually. Moreover, the service could not increase the price without the approval from Congress, Greene Publishing reports.
In 2009, sales at Postal Service declined by $7 billion, which led the agency to hike stamp prices recently. Arlene Sanchez, Postal Service's communications programs expert, said that the price changes will be made obvious to consumers owing to the attractiveness and non-stop validity of Forever Stamp. She added that consumers will be delighted and enjoy the stamp price fall.
According to her, the price change will not affect postal staffs who will remain in their respective positions. In addition, the Postal Service will carry on with its effort to ease fiscal miseries by cooperating with legal service members, as reported by TAHLEQUAH.
The postal service price is linked to inflation so many people wants Congress to interfere in this issue to settle down the problem of Postal Service. The price decrease is welcomed by many postage users across the country.
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