A post office in the United States is in a “very, very serious” state, the post office’s CEO said on Tuesday, as the Trump administration began an aggressive push to roll back the Obama administration’s postal system.
Mark McFarland, who is retiring at the end of the month, has been in charge of the USPS since 2014, when President Donald Trump was elected.
McFarland said the agency is in “very difficult financial straits” as the U.S. Postal Service has experienced its worst year in nearly 30 years, with revenue declining by $5.5 billion last year, and the agency reported a $2 billion loss in the first nine months of 2018.
“It’s really hard to say the post offices are in very bad shape,” McFarlands comments at the start of the first episode of the “America First Post” podcast.
“But they’re in very tough financial strait, and they have to deal with the impact of the Affordable Care Act, and those things.”
The administration wants to undo the post-Obamacare health care law by 2019, and McFarions plan to propose a bill that would eliminate some of the taxes that support the postal system in the coming months.
He said the Postal Service faces a difficult balancing act between protecting its finances and maintaining its image.
“We’re going to need to find a balance that we think is appropriate to protect the future of our business,” he said.
The Post Office said in a statement that the USPS is “in a very, very difficult financial position,” and said it would need to “expand our existing operations, hire more employees, and improve its financial position in the years ahead.”
It added that it “will work with Congress to help us achieve these goals, including through a tax cut and other actions to promote the Postal service’s success.”
In recent weeks, the USPS has announced it will phase out all mail by the end and has begun the process of moving more than 3 million post offices and mailboxes to other locations around the country.
“While we have not reached that point yet, we are moving to other parts of the country, moving mail to rural areas and rural areas to urban areas,” USPS Commissioner Dan Cathy said in an interview last month.
McClintock said that if the Post Office were not in a dire financial situation, he would have given the agency a break on the tax cuts.
“We could have just had a one-year tax cut, which would have been good,” he says.
“The fact is we have to balance that with the fact that we’re going through this recession.
We can’t just get a one or two-year deal, but we have got to figure out a plan.”
McClatchys tax plan would have reduced the top rate of the individual income tax to 20 percent from 35 percent, eliminated all of the estate tax, cut the corporate tax rate to 15 percent, and extended the Bush tax cuts for the wealthy.
But McFarlanders plan would cut that rate to 17 percent.
McCohen says the USPS faces challenges with both the current tax system and its post office.
“One of the biggest challenges is that the IRS doesn’t understand what it’s doing,” he told “America’s Postmasters” podcast in September.
“It doesn’t know how to work with the postal service, because we don’t have the postal workforce.”
McCohens plan would also have eliminated the Postal Regulatory Commission and eliminated the Office of Thrift Supervision, which regulates the post service.
McCarthy says the Postal Workers’ Union is also a key player in the debate over postal service tax reform.
McCollins plans to address those issues at the next USPS board meeting on January 28.