Stamps may go up to 46 cents
July 6, 2010
The U.S. Postal Service on Tuesday proposed a 2-cent increase in the price of a first-class postage stamp to 46 cents. If approved, the change would go into effect Jan.2, 2011. [CNN]
The proposed rate hike underscores the deep financial hole the Postal Service is currently in, with a $7 billion deficit projected for next year.
Complicating the situation is the deep decline in mail being sent. In 2009, the amount of mail being sent declined 12.7 percent. Businesses are cutting back on their mailings and more and more people are communicating and paying bills via the Internet.
The Postal Service already announced a 50,000 job-reduction earlier this year.
Rates on packages and magazines are also expected to increase. The combined new revenue would be around $3 billion annually.
The Postal Regulatory Commission, which must approve the increase, had 90 days to issue a decision.