[Gordongekko909]

A private company will probably be more expensive at point-of-sale. That's because they don't get tax subsidies.

Here's the thing: your taxes prop up the USPS no matter if you use it or not. So even though the marginal price of sending a letter is a mere thirty-nine cents, you're still paying more through your taxes. And you really get burned if you don't send any letters, because then you get very little utility (you still get some benefit from receiving letters, but most of the cost is borne by the sender) while still paying for the service.

It's more of a free rider problem than anything else.

[toddlintown]

"Here's the thing: your taxes prop up the USPS no matter if you use it or not."

The USPS gets no federal subsidies. They make most of their money from junk mail. First class is an "inconvience" that they tolerate.

[teenyelliott]

Perhaps. But do you really think all of the money that is used to prop up the USPS would cease to be taken from US citizens?

It would just go to some b.s. entitlement program.

I'd rather have it going to the USPS.

Gubmint never, ever would let us have that money back.

[muawiyah]

USPS operates without a direct government subsidy. Still, they don't pay taxes on the properties owned by the US government. Even if they were totally privatized you'd find the successor companies making deals with states to avoid taxation.

Now, when it comes to leased facilities (owned by private parties), USPS pays property taxes.