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Who's Saying What: Harry Potter
Goes Postal
The Washington Times Grover
Norquist July 25, 2000
The nation is
delirious with Harry Potter fever. Hundreds of thousands of kids are
eagerly awaiting the mail delivery that will bring them their precious
copy of the fourth installment of young Harry's
adventures.
Little do these young readers suspect there's a far
greater evil lurking without the book than within its pages. Because if
the United States Postal Service has its way, these same kids will be
hit with a 15 percent reader tax in time for Harry Potter
V.
While most of Washington is basking in the aura of budget
surplus and discussing tax cuts, the USPS has quietly proposed a 20
percent rate increase on books, 15 percent on magazines and 12 percent
on rural newspapers delivered by mail. The $300 million magazine rate
increase alone is threefold the inflation rate and double what is needed
to cover costs. This periodical rate increase is nothing more than a
reader tax only Harry Potter's arch-enemy Voldemort could
love.
The pretzel logic of this proposal defies even the magic
practiced at Hogwart's wizard school. At a time when our educational
system is struggling to turn out a generation of literate students,
books like the Harry Potter series have inspired millions of kids to
read. Magazine publishers offer schools special editions of
newsmagazines to help those eager readers learn about the world. Both
political parties pledge themselves to improve the reading scores of our
kids.
Postmaster General William Henderson proposes to do his
part by taxing them.
Any other tax proposed in Washington today
that would affect 166 million Americans - that's how many people go to
their mailbox each year looking for one of the more than 6,000 magazines
published in the U.S. - would die a quick death in a Congress that is
busy slaying the dual dragons of the death tax and the marriage
penalty.
Alas, Postal rate increases don't have to be approved by
lawmakers. The Postal Service, a government-protected monopoly, must
propose new rates to the Postal Rate Commission, an independent
five-member panel, which engages in a 10-month decision process. Yet in
the end USPS management can ignore the commission's decision, raise
rates as it pleases, and face no market competition to prevent the levy
of a reader tax.
Congress should insist that Henderson recant the
evil spell that is his rate-increase request.
How nasty is this
spell? In it, the USPS has simply ignored a two-year effort by magazine
publishers, jointly with the Post Office, to find more efficient ways to
handle periodical mail. The study that resulted identified more than
$150 million in savings from better USPS organization, automation,
facility location and transportation management. That is half the
proposed $300 million increase - meaning the real need of USPS is for a
rate increase of only 7.5 percent.
Mr. Henderson proposed this
double-digit reader tax even though, at an October 1999 American
Magazine Conference, he had pledged that any rate increase for magazines
would be in the single digits.
One wonders how Mr. Henderson
continues to defend this rate increase even though the Postal Rate
Commission has demanded USPS management explain the runaway costs that
have plagued this government-sponsored monopoly. (This is the same
postmaster general who, at the Postal Forum in Nashville on March 20,
declared that " w e have to bring our internal cost structure down and
restrain prices" at the Post Office.)
This double-digit reader
tax proposal stands some two months after Mr. Henderson told a House
subcommittee that the study's cost savings amounted to more than $150
million and only a single-digit increase was needed to break even.
Voldemort - sorry, Mr. Henderson - told the Senate just last week that
"When we saw those cost studies we began working with the Magazine
Publishers to try to identify strategies to reduce costs. And we think
we've been successful with about $150 million
identified."
Perhaps this $150 million is so hard to subtract
from the rate increase because it has been affected by some sort of
inadvertently cast invisibility spell. It happens.
Even Muggles
(non-wizards, in Harry Potter land) don't need special powers to see
that taxpayers are getting the short end of the broomstick. Congress
should say a loud no on this horrible reader tax. Our lawmakers should
tell Mr. Henderson and the Postal Service to implement the $150 million
in savings identified in the joint survey and cut the proposed rate
increases in half. Because what this country's readers need is a lot
less Voldemort and a lot more Harry Potter.
Grover G. Norquist is
president of Americans for Tax Reform.
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