Needless to say, it’s been a tough year for small businesses. But, not to worry, the Internal Revenue Service just made it worse. According to a recent news report ([link removed]) , “The Internal Revenue Service is planning to ramp up audits of smaller businesses and their investors by about 50% next year, following years of persistently low examination rates, an agency official said Tuesday. The result could be a surge in audits of companies ranging from mom-and-pop retail stores and technology startups to investment funds.” This is outrageous, but not surprising. Remember, it was the IRS that sent stimulus checks to dead people. The reason they sent them in the first place was that nobody told them not to. Yep, that’s right, they had to be told NOT to send checks to deceased individuals.

A $9.2 Billion Postal Plunder

The United States Postal Service (USPS) continues to go through turbulent financial times. They just announced a $9.2 billion loss for the last fiscal year that ended on September 30th. That is up from the $8.8 billion loss from last year. Did the pandemic cause this growing shortfall? Not exactly. While First Class mail and marketing mail was down, package delivery increased by 18 percent during the pandemic….which makes sense. What doesn’t make sense is that while the USPS delivered more packages, they lost more money. The problem is that delivering packages is expensive and we just don’t know how much money is being lost per package. One estimate says that the USPS is losing $1.46 per package, though the agency has moved toward more realistic package pricing polices since that figure was published. But until the agency opens their books and shares their pricing assumptions with the public, financial analysts will be in the dark about the USPS’ abysmal finances. The good news is that new
leadership at the USPS is pushing the agency to move away from its old, failed policies. Since assuming the office of Postmaster General (PMG) on June 15, Louis DeJoy has hit the ground running in reforming the USPS. The agency’s new leader consolidated the USPS’ overbuilt network of unnecessary machines and collection boxes and has tried to rein in out-of-control overtime costs. But it’s hard to reform a deeply troubled agency when lawmakers and pundits baselessly assert there’s a conspiracy to kneecap the USPS. Congressional pushback and court orders have slowed the momentum of PMG DeJoy’s reforms, but progress must continue to get the USPS back into the black.

In August, DeJoy testified before Congress, and instead of asking him about how to save the beleaguered agency, they asked about how many phone calls he had with President Trump. Even though Congress didn’t ask, here are two recommendations: 1. End Saturday delivery, which would save $3 billion a year; and 2. Fix the overcharging of middle mile drivers, which would save $1 billion a year. More recommendations can be found here ([link removed]) in TPA’s report. In managing its $160 billion debt, the USPS needs to turn itself around and fundamentally change the way it does business. The incoming Biden administration must work closely with PMG DeJoy to continue cutting costs and pursue full financial transparency. Both parties in Congress have dropped the ball. The USPS has dropped the ball and a bailout won’t save the deeply-troubled agency.

Time to Rethink the Presidential Transition Period

This Presidential transition period is seemingly going to take forever. But, before 1933, an out-going presidential administration would remain in office until March 4. As in 1933, America finds itself in a position where transition times are longer than they need to be and lame-ducks reign with impunity. It’s time to once again shorten the time between Election Day and Inauguration Day. Before Trump, out-going presidents used the transition period to promulgate “midnight regulations” out of the sight (and electoral wishes) of the American people. For example, in late 2000, out-going President Bill Clinton used the lame-duck period to add more than 26,500 pages to the Federal Register, including onerous environmental standards on air conditioning, heating pumps, and washing machines. Surely, it would have been better to give incoming President Bush a head-start on crafting his agenda instead of prolonged, secretive regulatory shenanigans. Congress is no better with lame-duck sessions
passing bloated spending bills that stick taxpayers with massive bills. After the midterm elections concluded in 2010, lawmakers wasted no time putting together a $1.2 trillion spending bill laden with more than 6,000 earmarks totaling $8 billion. An outraged Sen. John McCain, R-Ariz., lamented, “The American people said just 42 days ago, 'Enough!' ... Are we tone deaf? Are we stricken with amnesia?" With a prolonged transition period, these lame-duck outrages are par for the course.

It used to make far more sense to have a prolonged transition period. When then-presidential candidate Andrew Jackson journeyed from Nashville, Tennessee to Washington, D.C. just on the off chance that he would be elected (or chosen by the House of Representatives) the trip by steamboat and private coach took 28 days even without any significant snafus or interruptions. Nowadays, our nation’s capital is a few-hour flight from anywhere in the country, and nineteenth-century concerns about the long-perilous trips (with the possibility of assassination) are in the rearview mirror. Presidential candidates can now quickly, easily communicate with prospective cabinet members over the phone (and video conferencing) and lean on an intensive, well-funded vetting process. The same is true for congressional candidates mulling over potential chiefs of staffs should they beat their opponents in November. Just two weeks after this past election, President-elect Biden has already named some of his top
staff to help lead the new administration. And, there’s already an ample list of names for each cabinet position.

Even if shortening the transition period by a month makes sense, the logistics wouldn’t be easy. Altering the status-quo would probably require amending the Constitution, which is no easy task in today’s hyper-polarized environment. But similar to the Twenty-Seventh Amendment (ratified in 1992), the change could easily attract bipartisan support and help bring the country together. Even barring a change to the Constitution, it is possible for out-going presidents to set a norm where they hand over power early. The otherwise-vile Woodrow Wilson planned one such bold move in the event that he lost the 1916 election. But President Wilson was re-elected, and this plan never saw the light of day. Whether through presidential maneuver or Constitutional amendment, it is time to end the sway of lame-ducks.

BLOGS:

Monday: Big Tech Hearings are Wasteful Political Theater ([link removed])

Wednesday: No good for taxpayers – Biden administration likely to tout more taxpayer-funded broadband ([link removed])

Thursday: TPA Urges FTC to Reject Antitrust Action Against Facebook ([link removed])

Friday: TPA’s 2020 Taxpayer Turkeys ([link removed])

MEDIA:

November 16, 2020: I appeared on The Ross Kaminsky Show on 630 AM KHOW (Denver, Col.) to talk about Joe Biden’s potential healthcare plan.

November 16, 2020: WBFF (Fox, Baltimore) interviewed me about the Postal Service’s $9.2 billion loss.

November 16, 2020: TPA was mentioned in an editorial on Wave 3 News (Louisville, Ky.) titled, “Column: Municipal broadband’s rocky coast littered with avoidable mistakes.”

November 16, 2020: The Center Square ran TPA’s op-ed, “Lame-duck Congress needs to pass a responsible budget.”

November 17, 2020: VP of Policy Patrick Hedger appeared on Delmarva Live on WGMD Radio 92.7 FM (Delaware) to discuss regulations and the response to Covid-19.

November 17, 2020: I appeared on “The Steve Gruber Show” on WJIM 1240 (Grand Rapids, Michigan) to talk about electric vehicles.

November 17, 2020: VP of Policy Patrick Hedger appeared on the TMA Morning Show on 1250 WTMA (Charleston, S.C.) to discuss regulations and the response to Covid-19.

November 17, 2020: I appeared on 560 AM KLZ (Colorado) to talk about Biden’s tax plan.

November 17, 2020: I appeared on The Bill Meyer Show on KMED 1440 AM (Medford, Ore.) to talk about electric vehicles.

November 17, 2020: The Center Square ran TPA’s op-ed, “No good for taxpayers – Biden administration likely to tout more taxpayer-funded broadband.”

November 18, 2020: VP of Policy Patrick Hedger appeared on The Morning Briefing with Tim Farley (SIRIUS POTUS Channel 124) to discuss regulations and the response to Covid-19.

November 18, 2020: I appeared on “Ringside Politics” with Jeff Crouere on WGSO-AM (New Orleans, La.) to talk about TPA’s new report on electric vehicle subsidies.

November 18, 2020: VP of Policy Patrick Hedger appeared on The Vinnie Penn Project on WELI 960 AM/96.9 FM (New Haven, Ct.) to discuss regulations and the response to Covid-19.

November 18, 2020: I appeared on 970 AM WFLA radio (Tampa, Fla.) to talk about green energy subsidies.

November 18, 2020: VP of Policy Patrick Hedger appeared on The Morning Line on KWTO 560 AM/93.3 FM (Springfield, Mo.) to discuss regulations and the response to Covid-19.

November 18, 2020: The Western Standard (Calgary, Canada) ran TPA’s op-ed, “Plastics ban will do more harm than good to the environment.”

November 19, 2020: Townhall.com ([link removed]) ran TPA’s op-ed, “Will Internet Slow Down Under Biden?”

November 19, 2020: VP of Policy Patrick Hedger appeared on Richmond’s Morning News with John Reid on WRVA 1140 AM/96.1 FM (Richmond, Va.) to discuss regulations and the response to Covid-19.

November 19, 2020: WBFF (Fox, Baltimore) interviewed me about another round of relief money.

November 19, 2020: VP of Policy Patrick Hedger appeared on Rush to Reason with John Rush on KLZ 560AM (Denver, Co.) to discuss regulations and the response to Covid-19.

November 19, 2020: I appeared on WBOB Radio (600 AM AND 101 FM Jacksonville, Fla.) to talk about education spending and lockdowns.

Have a great weekend, stay safe, and as always, thanks for your continued support.

Best,
David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])

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