The United States Postal Service (USPS) has 10,000 pieces of surveillance equipment. That 10,000 number is not a typo.  And now, a new report by the USPS Inspector General (IG) shows that they don’t know where the equipment is. I discuss this in more detail below.  The Taxpayers Protection Alliance Foundation, the educational arm of the Taxpayers Protection Alliance (TPA) submitted a FOIA request to the USPS to figure out what is going on.  In it, we asked for, “A list of law enforcement surveillance equipment sampled by the USPS Inspector General (IG) at the National Headquarters of the Postal Inspection Service (PIS) and the PIS’ Chicago, Fort Worth, Los Angeles, and New York divisions."
 
Tax Reform’s Next Step
 
For most of 2023, the idea of a bipartisan tax package seemed low on the list of congressional priorities. However, last December, reports began surfacing that lawmakers were quietly in bipartisan negotiations on renewing major tax provisions that have expired or are currently being phased out. Late last month, the House of Representatives passed a rare, bipartisan tax deal that would give American working families and small businesses a break. Today, the deal sits idle in the Senate. Sens. Chuck Schumer (D-N.Y.) and Mitch McConnell (R-Ky.) should do the right thing and bring this tax deal to the Senate floor now, before this year’s tax deadline arrives.
 
For years, businesses have been raising the alarm about the rising cost of their operations. This hinders their ability to competitively innovate against other nations that offer “super-tax” breaks for product innovation. Pro-growth tax provisions from the Tax Cuts and Jobs Act (TCJA) – like full research and development (R&D) expensing – expired as far back as 2021. The business community has, as a result, suffered a competitive disadvantage for deploying their capital in the United States.  Until 2022, if a business invested money into (R&D), they could deduct the full amount from their taxable income for that year, since the money was not effectively used as income, but re-invested into the company. As of 2022, however, those costs had to be spread out over five years. This increased American businesses’ tax bill and made it a riskier proposition to invest. This tax package is a worthy response to repeated calls for help from America’s business community. The bill – introduced by Rep. Jason Smith (R-Mo.) – is appropriately dubbed The Tax Relief for American Families and Workers Act of 2024. On January 31st, the entire House voted overwhelmingly to shore up the wallets of families and entrepreneurs alike. The bill passed 357-70, and H.R.7024 was sent to the Senate for a future vote.
 
The longer the Senate waits to vote on this tax package, the more likely the window to fix the damage this tax season goes by. This legislation brings solid wins to the American public and a much-needed political wins to both sides of the aisle. The House rightly saw the immediate need to restore immediate and full R&D expensing, reinstate one hundred percent bonus depreciation, and provide relief on certain business-interest deductions, like machinery. These provisions make it easier for businesses to invest in themselves and the American economy, minimizing that risk. Looking at where the provisions apply retroactively, R&D expensing is provided for 2022 and 2023, one hundred percent bonus expensing applies for 2023, and increased interest deductions apply for both 2022 and 2023. Looking to the future, returning to immediate R&D expensing will allow companies to deduct their expenditures in the year they were incurred. This will free up capital and allow small businesses that are highly leveraged to make investments in their future. This includes adding jobs, as the salaries of those workers helping to develop products are generally categorized under R&D expenditures. Simply put, high-skilled jobs will start in the United States and stay there. 
 
Research by the Tax Foundation shows that the package does not exacerbate inflation, despite dubious claims to the contrary. After 2025, tax revenues actually increase through 2033. Providing relief at a time when wages have not kept pace with inflation is just as critical to Americans as any other issue the Senate is set to debate soon. Should the Senate decide to take up The Tax Relief for American Families and Workers Act of 2024 soon, they will build on the benefits ushered in under the TCJA, and add even more reforms on top of it.  This tax deal makes America more competitive and builds up the economy to weather this current inflationary climate. Leaders in the Senate have been handed a massive opportunity by the House. Further, this is a chance for a bipartisan win – something that has been sorely lacking as of late. There are few “no-brainers” in Washington. However, this is as close as the Senate has come to deliver a key victory for taxpayers. They should take it.
 
Postal Surveillance
 
The U.S. Postal Service (USPS) can’t stop spying on Americans. The struggling agency’s snooping activities first came to light in 2021 when Yahoo! News reported that the USPS runs an investigation unit known as the Internet Covert Operations Program (iCOP; since renamed the “Analytics Team”).  The program “involves having analysts trawl through social media sites to look for what the document describes as ‘inflammatory’ postings and then sharing that information across government agencies.” According to recent watchdog reporting, the scope of surveillance is even larger than previously reported. A recent report by the USPS Inspector General (IG) finds that the agency has 10,000 pieces of law enforcement surveillance equipment valued at over $65 million. And, even more alarmingly, the agency is having trouble accounting for this equipment. It’s time for the USPS to stop snooping and start delivering for taxpayers and consumers.
 
Following a surge in mail-related theft, policymakers and concerned consumers have called on the USPS to patrol routes and secure collection boxes. The agency seems to have other priorities. According to the IG report, the USPS has spent a significant sum on electronic surveillance equipment, defined as, “equipment that typically records sensitive data such as location, voice, phone numbers, and call log details.” The report then delves into more details about how postal inspectors may use this equipment. But, this information is predictably redacted from the public. First and foremost, the public ought to know why the USPS needs phone numbers and call log details.  Ironically, while the USPS is keeping track of Americans, the agency cannot be trusted to keep track of the surveillance equipment it is using to spy on Americans. The IG identified, “134 of 404 (33 percent) pieces of electronic surveillance equipment and 464 of 1,238 (37 percent) pieces of technical surveillance equipment that...were either recorded with errors or were not recorded in the inventory management system.” Further, policies and procedures around equipment use have not been updated, increasing the risk that employees will abuse surveillance resources.
 
The USPS’ surveillance missteps fit into a larger and troublesome pattern for the agency. The USPS has shown no sign of giving up on social media snooping despite questions and scrutiny from lawmakers. And, in 2022, NBC News reported that the USPS is facing legal scrutiny for “seizing shipments of Black Lives Matter masks intended to protect demonstrators from Covid-19 during protests following the May 2020 murder of George Floyd.” These (and other items) were seized because of the external physical characteristics of the parcels, leading to the possibility that agency employees will jump the gun and open packages based on the mere suspicion of counterfeit postage. That’s a lot of power in the hands of an agency with a track record of disregarding Americans’ privacy and political beliefs. The USPS should focus its law enforcement spending on fighting mail theft instead of spying on law-abiding citizens.  For example, Postal Police Officers can and should be deployed to protect mail carriers on their routes and safeguard collection boxes. Members of Congress have already pressed postal leadership on this issue, but the result has been less than encouraging. During a May 2023 House Oversight and Accountability subcommittee hearing, Rep. Jamie B. Raskin (D-Md.) asked Postmaster General DeJoy whether the USPS has, “continued to prevent Postal Police Officers from doing their jobs…by traveling to wherever the problem is taking place?” DeJoy responded baselessly that he doesn’t have the authority to deploy the 700-strong police force to high-crime areas because of laws on the books. Until the USPS prioritizes fighting crime over snooping on Americans, taxpayers and consumers cannot place their trust in the troubling agency. America’s mail carrier makes for a lousy CIA.

BLOGS:

Tuesday: TPA Submits Testimony Against South Dakota HB 1247

Wednesday: Industrial Policy Indignities

Thursday: TPAF Submits FOIA to USPS Over Agency’s Surveillance of Americans

Friday: As Tax Season Arrives, the Senate Can Lower American Tax Bills

 
Media:  

February 19, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me about transportation funding.
 
February 19, 2024: WBFF Fox45 (Baltimore, Md.) quoted TPA in their story, “Errors led to Baltimore County Schools overpaying $823,000 to former employees.”
 
February 19, 2024:  WBGZ (St. Louis, Mo.) quoted TPA in their story about age verification legislation.
 
February 19, 2024:  The Illinois Radio Network quoted TPA in their article, “Social media ID plan could violate free speech.”
 
February 20, 2024:  Filtermag.org quoted TPA in their article, “At Hostile COP10, Threats to Tobacco Harm Reduction Postponed.”
 
February 20, 2024: The American Institute for Economic Research ran TPA’s op-ed, “Industrial Policy Indignities.”
 
February 21, 2024: Townhall ran TPA’s op-ed, “Postal Service Caught Spying on Americans...Again.”
 
February 21, 2024: The Vaping Today (Colombia) mentioned TPA in their story, “Sin reducción de daños la lucha contra el tabaquismo está condenada al fracaso, advierten expertos en la Good COP.”
 
February 22, 2024:  I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about a new student loan bailout. 

February 22, 2024: The Blaze ran TPA's op-ed, "FTC's Aggressive Tactics Strike Fear in Tech."
 
February 22, 2024: WBFF Fox45 (Baltimore, Md.) interviewed me about green energy spending in Maryland.

February 22, 2024: Inside Sources ran TPA's op-ed, "Postal Service Focusing on Expensive Products No One Wants."
 
February 22, 2024:  Real Clear Politics tan TPA’s op-ed, “Taxpayers Don’t Want the IRS to Prepare and File Their Taxes.”
 
February 22, 2024: The Manila Standard (Manila, Philippines) mentioned TPA in their story, “Senator asked to think about livelihood of 3 million Filipinos in tobacco industry.”
 
February 22, 2024: The Philippine Daily Inquirer (Philippnes) mentioned TPA in their story, “Marcoleta: Pia Cayetano wants Filipinos' tobacco livelihood killed.”
 
February 22, 2024:  Metro News Central mentioned TPA in their article, “Doctors need to know scientific facts on THR, say advocates.”

February 23, 2024: Real Clear Markets ran TPA's op-ed, "As Tax Season Arrives, the Senate Can Lower American Tax Bills."

February 23, 2024: Filtermag.org ran TPA's op-ed, "The WHO Prioritizes Youth Who Don’t Smoke Over Adults Who Do."

February 23, 2024: Philippine Daily Inquirer quoted TPA's Martin Cullip in their article, "WHO chair hails PH’s ‘collaborative spirit’ at COP10."

Have a great weekend!



Best,

David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 1120
Washington, D.C. xxxxxx
www.protectingtaxpayers.org

 

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