CEMENT THE FISCAL IMPERATIVE & END THE STAMP TAX 

The following is a special contribution to the PostCom Bulletin by Valassis Senior Vice President for Governmental Affairs Vincent Giuliano. Mr. Giuliano is a member of the Board of Directors of the Association for Postal Commerce (PostCom), and has served as a chairman of its board. The views expressed here, however, are solely the author's.

Thirty days ago trade association & rate payer colleagues participated in the PostCom-sponsored "Postal Leadership Summit". Collectively, we agreed the #1 issue facing our industry today is the Postal Service’s onerous payments required by PAEA for its pension and health care obligations which undermine the efficacy of the USPS as a reliable and affordable medium.

Thank you to those who participated, debated and helped us reach a consensus. We gained unanimity for the fiscal imperative to work collectively to correct a $75 billion overpayment that has imbedded a 7.5 % "Stamp Tax" - 3 cents per stamp - in the postal rates being paid by businesses and citizen mailers alike. Without this "tax" the USPS would be financially viable even in this period of declining mail volume. All of the recent studies show that OPM's estimate of the unfunded retiree health obligation is excessive, due to erroneous assumptions used in calculating the present value of the future obligation.

In a mere 30 days, "our" issue has been fueled by a number of separate actions adding to a clarion call urging a correction to the payments required of the USPS. These include: • the passion of OIG’s David Williams to prominently raise awareness at MTAC and other venues of the findings contained in his January report; • the leadership of the Postal Rate Commission to hold a public forum where Chairman Goldway, at the conclusion, remarked that maybe the PRC should consider proposing legislation to Congress; • the Annual Compliance reply comments filed last week by APWU, Valpak, SMC and Valassis urging the Commission to exercise its responsibilities under Section 701 of PAEA; • the USPS’ request of the PRC to review the determinations by OPM regarding the CSRS obligations as construed under PAEA

Our fight to end the "Stamp Tax" has begun. It's time for "March Madness" to cement the imperative to build on the momentum and consensus by pursuing a permanent correction and elimination of annual USPS pension/health care payments.

This week PMG Potter will unveil a plan to reshape the USPS’ business model. As industry leaders and supporters of a sound, viable US Postal Service, we must remain united to demand that “the impediment” to the financial solvency of the USPS be corrected. Strategically, this is our #1 public policy issue. All other issues pale in scope and impact. Unless we secure a permanent legislative/statutory fix, this burden will continue to undermine any hope for the Postal Service to adapt its future business model to serve the evolving needs for an effective universal communications network.

The evolving opportunity and widening-band of support is fostering the financial imperative for change. Please remain focused on our number one priority and seize the momentum before us. Together, we can chart a new future with a more-level financial playing field. Let’s end the “Stamp Tax” now!