Postal Ser­vice wants to raise cost of a stamp start­ing Jan. 2

Austin American-Statesman - - WEDNESDAYBRIEFING -

If ap­proved by the Postal Reg­u­la­tory Com­mis­sion, whose ap­pointees are named by the pres­i­dent, the cost of a first-class stamp will go up 2 cents, to 46 cents, ef­fec­tive Jan. 2. It would be the sev­enth in­crease in a decade for the Postal Ser­vice, which has op­er­ated with­out tax-based sub­si­dies from the govern­ment since 1982.

Rev­enue has de­clined with the ad­vent of e-mail and com­pe­ti­tion from pri­vate ship­ping com­pa­nies. Post­mas­ter Gen­eral John Pot­ter has called the Postal Ser­vice’s fi­nan­cial sit­u­a­tion dire. The agency faces a $7 bil­lion pro­jected deficit in the fis­cal year be­gin­ning Oct. 1.

The rate in­crease, along with in­creases for ship­ping news­pa­pers and mag­a­zines, is ex­pected to bring in an ad­di­tional $2.3 bil­lion of rev­enue in the first nine months of 2011.

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