What an interesting week for our very own Lindsey Stroud. In addition to being blocked on Twitter by the nanny state proponents at Campaign For Tobacco-Free Kids this week, Lindsey was “fangirled” by Rep. Julie Casimiro, Deputy Majority Leader of the Rhode Island House of Representatives in a meeting with likeminded consumer choice organizations. Prior to TPA, Lindsey worked tirelessly on tobacco and vapor issues in all 50 states, at The Heartland Institute, and as a board director at the Smoke-Free Alternatives Trade Association. She educated lawmakers and specifically Rep. Julie Casimiro, who, after introducing a flavor vapor product ban in the Ocean State, reversed her decision after visiting a vape shop and learning more about the products. In 2020, Lindsey offered Rep. Casimiro important information on youth use in Rhode Island that the representative used. Since coming to TPA, Lindsey has provided states with updated information and presented testimony to Rhode Island lawmakers in regards to regulatory legislation that is being considered during the 2021 legislative sessions. During the meeting this week, Rep. Casimiro happily thanked Lindsey for all the information she has provided the representative. She also stated that, “Lindsey was instrumental in our vaping legislation efforts in Rhode Island. She was able to provide me with much needed data in a very timely manner which allowed us to make informed decisions and help develop our legislation. Lindsey is knowledgeable, helpful and was always willing to help with data/science to drive our strategy.” I, myself, and the team at TPA couldn’t agree more and are looking forward to more great work from her.
Big Tech is Small Biz… Just ask Phil and Misti Money
On Thursday, the House Energy and Commerce Committee held yet another hearing on how Big Tech is supposedly destroying our lives. TPA disagrees. But, you already knew that. Instead of listening to us, I want you to see what 6 Money, a small business in Ohio, has to say about Big Tech and how they financially survived the pandemic because of Big Tech. And, as a side note, 10 years ago when TPA was created, this is exactly the vision I had… an organization that could help people like Phil and Misti Money who own and operate 6 Money. TPA is advocating on their behalf while they focus on their business and their family.
Here are a few excerpts (full statement):
On behalf of ourselves, our employees, and – most importantly – our customers, we would like to thank the committee for hearing our testimony about the impact “big tech” has had on our lives and our business. We appreciate in advance the time taken to consider our testimony in this important matter. Our company, 6Money’s Creations, specializes in custom decorated apparel. We started up humbly in January of 2016, trying to bring in whatever income we could, being in between jobs at the time. In the beginning, it was just the two of us and our four children – hence the name 6Money’s Creations – and was far from the success story it has become today. The Money family is from a very small town in Ohio, in the heart of Amish country. At the time we began 6Money’s Creation, the population of our town was in the neighborhood of only 250 people. Since most of the out-of-town visitors came to visit the aforementioned Amish country, we had to rely very heavily on the few local customers we could cobble together to keep our business running. The coronavirus pandemic threw a wrench into our plans – as it did with so many small businesses like ours. The early days were a time of great uncertainty for our family and our business. The trade shows and fairs we had come to rely on for much of our business were shut down indefinitely. We didn’t know whether we should – or even could – move forward with production and our planned promotions. The future of our company hung in the balance. Fortunately, we were able to go ahead. This was due in no small part to our customer base that was able to find us through Facebook and Instagram and online retailers. We are so thankful we did, because 6Money’s Creations has continued to thrive and grow. From our humble beginnings in a tiny town in Ohio, we now have customers in 26 different states across the country. We can confidently say that were it not for big tech companies, our family would be in economic dire straits. Without them, a relatively new small business from an even smaller town would not have been able to survive this global health and economic crisis. The resources available to us through these tech giants are ones we could not have possibly secured on our own. Nor, could we have ever hoped to reach that large of an audience and customer base organically.
As you consider potential changes to the business models of these tech companies, or bringing any sort of legal action against them, we hope you will consider our story. We also hope you will consider the stories that have yet to be written that may not be so without a robust tech sector free to innovate.
Postal Service Finally Delivers on 10-Year Plan
Two years ago seems like a lifetime ago. It has flown by for the United States Postal Service (USPS) considering that the USPS lost $18 billion over the last two years. And, two years ago, former Postmaster General (PMG) Megan Brennan promised Congress that the struggling United States Postal Service (USPS) would release a 10-year business plan in two months. Now, almost two years and tens of billions of dollars in net losses later, America’s mail carrier finally released their comprehensive business plan. Laid out in a 55-page blueprint, the proposed changes would dramatically change USPS operations and generate $24 billion in net revenues over the next 10 years (excluding Congressional or Postal Regulatory Commission actions). Additionally, the plan is slated to lower costs by $34 billion over the next decade via cost reductions and increased administrative efficiency. While the plan contains many commendable features, the agency ultimately fails to address key cost drivers and operational issues that continue to hamper the USPS.
Stamp of Approval: Improving Administrative Efficiency
In the blueprint, the USPS envisions more than $3 billion per year in cost savings, a similar figure to TPA’s reform savings estimate produced in our 2019 report on postal reform. Various ideas include optimizing local truck routes, embracing performance-based highway contracting, diversifying the current mix of air carriers, and having a unified logistics program to ensure that the entire postal system is operating harmoniously. This series of changes is long overdue because inefficiencies and suboptimal transportation strategies have plagued the USPS for years. In 2019, TPA estimated that the failure to hold middle-mile delivery contractors accountable costs the USPS at least an additional $1 billion per year, or roughly a quarter of what the agency spends on highway contacts per year. When the USPS recently announced their estimated $6 billion agreement with Oshkosh Defense to produce up to 165,000 new mail trucks over the next ten years, it appeared that the prospect of a costly, all-electric fleet was off the table. But, according to the recently released blueprint, it’s back on the table. While the Oshkosh vehicles are primarily gas-powered, they are capable of being retrofitted with electric systems in the future. Unfortunately, the USPS appears intent on making the mistake of mass-retrofitting a reality…on the taxpayers’ dime. According to PMG Louis DeJoy, the USPS would need to spend up to $4 billion extra to fully electrify its fleet. Even if Congress winds up fully footing the bill for this cost on paper, the USPS would likely expend additional resources due to large, inevitable cost overruns associated with federal projects. All of this extra spending and effort would likely have a negligible impact on greenhouse gas emissions.
Up in Flames: Changing Service Standards and Maintaining 6-7 Day Delivery
The USPS commands the widespread respect and adoration of the American public due to their (mostly followed) pledge to quickly get mail in and out of mailboxes. As the agency points out, the USPS has failed to meet their first-class mail service standards since fiscal year (FY) 2012 and performance has been on the decline since FY 2017. There has been a particularly pronounced decline since the start of the coronavirus pandemic. The agency uses these metrics to argue that current standards are unattainable and makes the case for changing the current 1- to 3-day service standard to a 1- to 5-day service standard. While this may reduce some expenses over the short-term, the change would significantly erode the reputation and credibility of America’s mail carrier over the long-term. Pre-pandemic, roughly 90 percent of first-class mail was meeting service standards (figure 7 in blueprint). This performance will likely resume post-pandemic, as thousands of USPS workers emerge from quarantine and are vaccinated. Instead of ditching the service standard status-quo, the agency should seriously consider ending 6-day deliveries and 7-day package deliveries which entail significant overtime expenses. Allowing USPS workers to take a “breather” on weekends would save the agency at least $2 billion per year, while allowing Americans the option of speedy deliveries on weekdays.
Postal leadership deserves praise for finally releasing their 10-year plan (even though it’s two years late). The USPS can get back into the black by improving on their reform agenda and ditching 6-7-day delivery and truck electrification schemes. With the right reforms in place, PMG DeJoy can deliver a leaner, more reliable USPS and avoid costly taxpayer bailouts.
BLOGS:
Tuesday: Op-Ed: Financial Transaction Tax is a Solution in Search of a Problem
Wednesday: USPS [Finally] Delivers on 10-Year Plan
Thursday: Lessons Learned Ahead of Yet Another Big Tech Hearing
MEDIA:
March 19, 2021: I appeared on WHO 1040 AM (Des Moines, Iowa) to talk about the potential return of earmarks.
March 21, 2021: The Detroit News (Detroit, Mich.) ran TPA’s op-ed, “Grow broadband while keeping government in check.”
March 22, 2021: WBFF Fox45 (Baltimore, Md.) interviewed me about the current investigation of Marilyn and Nick Mosby.
March 22, 2021: The Center Square ran TPA’s op-ed, “Smart broadband policy more likely to take place at local level in Colorado in 2021.”
March 22, 2021: Townhall.com ran TPA’s op-ed, “Raising the Estate Tax Will Destroy Families and Jobs.”
March 23, 2021: I appeared on KXEL 1540 AM (Waterloo, Iowa) to talk about earmarks.
March 23, 2021: WBFF Fox45 (Baltimore, Md.) quoted TPA in their story, “Blurred lines between public servants and private dealings.”
March 23, 2021: I appeared on KRC 550 AM (Cincinnati, Ohio) to talk about earmarks and COVID relief spending.
March 23, 2021 I appeared on KTFH radio (Houston, Texas) to talk about potential tax increases.
March 23, 2021: Inside Sources ran TPA’s op-ed, “To Address Youth E-Cigarette Use, We Must Rely on Data.”
March 24, 2021: I appeared on KTFH radio (Houston, Texas) to talk about potential tax increases.
March 25, 2021: WBFF Fox45 (Baltimore, Md.) interviewed me about the potential new infrastructure bill.
March 25, 2021: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about the potential return of earmarks.
Have a great weekend!
Best,
David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org
