White Paper: Postal Reform: An Investment in Jobs and the EconomyIn contrast with the critics of postal reform who have charged that the proposed postal reform legislation would increase the deficit by as much as $1 billion a year, this new analysis shows that not passing postal reform could result in a loss of tax revenues in the $2 billion to $3 billion range.
This analysis calculates the tax revenues that will be lost when jobs are impacted by raising postal prices. Jobs and companies in the $900 billion mailing industry are increasingly price sensitive. Nine times as many jobs are private sector jobs than are postal jobs. Electronic services are only one example of the way in which this once-staid industry built around a government monopoly is increasingly competitive and therefore will react to sharp price increases.
This summary is a white paper on the economic impact of postal reform, and its appendices have been prepared by Transformation Strategy Inc. and SLS Consulting Inc., Washington, DC, working with professor Colin Blaydon of the Tuck School of Dartmouth College. These backup papers, as well as the Jobs Study and the Small Economic Model, are available from the Institute for Postal Studies of the Envelope Manufacturers Association's Foundation.