Stamp Prices Going Up 2 Cents, To 46 Cents; Purchase Forever Stamps

post ofc cliftonBuy those Forever stamps now. The cost of mailing a letter is going up again. Fighting to survive a deepening financial crisis, the Postal Service said Tuesday it wants to increase the price of first-class stamps by 2 cents — to 46 cents — starting in January. Other postage costs would rise as well. The agency’s persisting problem: ever-declining mail volume as people and businesses shift to the Internet and the declining economy reduces advertising mail.

“The Postal Service faces a serious risk of financial insolvency,” postal vice president Stephen M. Kearney said, an indication that without significant changes a time could come when the agency would be unable to pay its bills.

The post office lost $3.8 billion last year, despite cutting 40,000 full-time positions and making other reductions, and Kearney said it is facing a $7 billion loss for this year and the same for fiscal 2011, which begins in October. The rate increase would bring in $2.5 billion, meaning there still would be a large loss for next year.

The post office, though part of the government, does not receive a tax subsidy for its operations.

While the cost of a first-class stamp would go up, people who bought Forever stamps at the current 44 cents or at lower prices would still be able to use them without paying the difference.

Officials also said they plan a new design for Forever stamps, which currently have am image of the Liberty Bell. New Forever stamps will have images of evergreen trees. All Forever stamps would remain valid.

Under the proposed increases, in addition to the 46-cent rate for the first ounce, the cost for each additional ounce would go up a penny to 18 cents. The cost to mail a post card would go up 2 cents to 30 cents.

The price to send periodicals would go up about 8 percent, and other rates for advertising mail, parcels and services would rise by varying amounts.

The current 44-cent first-class rate took effect May 11, 2009. AP

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7 COMMENTS

  1. I always found it interesting how people get so focused on the price of stamps when they go up a few cents, which may translate into a few extra dollars a year. But what about when milk goes up 50 cents a gallon which could translate into $50 more a year? or chicken breast that goes up $1 a pound? for some reason, people get into a panic when stamps go up 1 or 2 cents, but other basic necessities that can go up by dollars never elicits the same response. I always found that very odd

  2. It’s a vicious cycle, because the more they raise the postage, the more people look for other mediums to advertise with. They should be LOWERING postage to give incentives to businesses to use the USPS.

    (Raising postage rates is like the democratic party’s way of closing budgets – tax, tax, tax. Lower taxes, and you will feed the economy!)

  3. Don’t buy forever stamps you’ll end up losing more money in wasted lost or ruined stamps then you’ll save buying them

  4. with some things prices will fluctuate. with a sales tax it is set forever. and so it is with stamps. chicken breast may be on special one week. stamps and taxes don;t go on special anytime.

  5. How is it that UPS will come to your block come to your house knock on the door come again if nobody is home all for a package that cost $7.00 to ship and UPS is making loads of money
    On the other hand USPS is coming to your block to deliver approximately 5 pieces of mail per house at the cost of $.30 each (some come bulk rate ) that equals $15 per block they won’t knock on your door and most places have a block mail box so the mailman has to really do nothing
    AND THERE STILL LOSEING MONEY something doesn’t jive

  6. UPS has never had a losing quarter. the reason is shipping packages particularly by businesses, is very profitable.

    Anyone that has a business that ships will tell you that they are constantly get calls from UPS and Fedex competing for their business.

    No business owner that I know of uses USPS. They are incovenient compared to UPS and FEDEX ,and are not setup or businesses to ship with.

    The post office should get creative and target the profitable business accounts

Comments are closed.