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You're technically correct when thinking of only the transfer of money, though that's not the whole story. Many here would call tax breaks to regular businesse
by sbuttgereit 9y ago
You're technically correct when thinking of only the transfer of money, though that's not the whole story. Many here would call tax breaks to regular businesses a tax subsidy to those businesses... after all, there are services those tax advantaged businesses are using that are being paid for by others. In this sense, there is a transfer of "something" from taxpayers to the business, it's just not hard "taxpayer dollars".
However, we see that the USPS does get a lot of advantages that are effectively subsidized by others:
http://fortune.com/2015/03/27/us-postal-service/ http://fortune.com/2015/03/27/us-postal-service/
There are real subsidies that the USPS gets that are funded by taxpayers, it simply that those are not paid in cash. So I think the person you were responding to has a completely valid point. They are not competing and doing business on the same terms as other businesses and squandering their cash is enabled because of the subsidies of other expenses that they don't have to bear directly.
- kasey_junk 9y agoThey also have to put up with all manner of political interference from Congress with regard to rates they can charge, what they can pay employees & what business plans they can implement. The Post Office has been a political battleground for 40 years and it shows. The “they are subsidized & squander their money” angle seems unfair given that. Personally I think they do a fairly good job. That said I think it’s fair to say they are tax subsidized, it’s just not much of one.