Businesses can figure on a tiny bump-up in postage rates next year -- no more than 2% for invoices, direct mail ads, magazines, catalogs, etc., and a 1¢ hike in first-class stamps to 45¢ -- the most the U.S. Postal Service (USPS) could impose unilaterally. Look for the increases to take effect by next May.
Firms dodged a mammoth postage rate hike of nearly 6% on average next year and up to a 20% jump for catalogs, oversized envelopes and magazines that the USPS sought on an emergency basis, citing steep declines in revenues due to the recession.
A business coalition turned the tide. It convinced the independent Postal Regulatory Commission that mail volumes are picking up along with the recovery. USPS efforts to cut labor costs will reduce the expected red ink next year to manageable levels.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Still, the Postal Service’s operations and rate outlook is up in the air. Mail volumes have stopped their freefall for now, holding at about 150 billion pieces annually, but they will erode further as electronic commerce siphons off billing notices, promotions and advertising.
Look for Congress to grapple with ideas to remake the USPS, just four years after a major overhaul was adopted to give the semi-public postal company more flexibility in operations and pricing. One likely option: An elimination or cut in the USPS’ $5-billion or so annual payment to pre-fund retirees’ health care benefits. Congress mandated the payment as part of reform legislation enacted in 2006. The money, sent to Treasury, is counted as federal income to reduce the deficit. USPS is the only agency to have this requirement.
Lawmakers will have to decide the fate of Saturday mail delivery. It was slated to end next year as a big cost saving measure, but Congress put a hold on that idea until January 2012. Also under consideration: a long-term plan to reduce mail delivery to just three days, closing hundreds of post offices and turning over all parcel and overnight delivery services to private carriers.
-
The Retirement Donor's Checklist: Key Deadlines by Gift TypeRetirees have some charitable contribution options that can help avoid spikes in income from RMDS and capital gains.
-
Cooler Inflation Supports a Relief Rally: Stock Market TodayInvestors, traders and speculators welcome much-better-than-hoped-for core CPI data on top of optimism-renewing AI earnings.
-
Are T-Mobile's Prepaid Perks a Home Run or a Strikeout?T-Mobile's prepaid lineup promises MLB.TV, T-Mobile Tuesdays and hotspot data. But do the perks make it worth switching?
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
What to Expect from the Global Economy in 2026The Kiplinger Letter Economic growth across the globe will be highly uneven, with some major economies accelerating while others hit the brakes.
-
The AI Boom Will Lift IT Spending Next YearThe Kiplinger Letter 2026 will be one of strongest years for the IT industry since the PC boom and early days of the Web in the mid-1990s.
-
Amid Mounting Uncertainty: Five Forecasts About AIThe Kiplinger Letter With the risk of overspending on AI data centers hotly debated, here are some forecasts about AI that we can make with some confidence.
-
Worried About an AI Bubble? Here’s What You Need to KnowThe Kiplinger Letter Though AI is a transformative technology, it’s worth paying attention to the rising economic and financial risks. Here’s some guidance to navigate AI’s future.
-
Will AI Videos Disrupt Social Media?The Kiplinger Letter With the introduction of OpenAI’s new AI social media app, Sora, the internet is about to be flooded with startling AI-generated videos.
-
What Services Are Open During the Government Shutdown?The Kiplinger Letter As the shutdown drags on, many basic federal services will increasingly be affected.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
