No Pay or Benefit Cuts for Postal Employees in Federal Budget

On Thursday, Oct. 26, the House of Representatives voted to approve the Senate’s budget resolution. With both chambers in agreement, there is now a budget which lays out limits for 2018 federal government spending.

Tens of thousands of postal and federal workers called on their lawmakers over the last few months to reject any resolution paid for by hurting the livelihoods of dedicated civil servants. You called to oppose: moving the Postal Service “on budget,” increasing employee pension contributions, ending the Social Security supplement and eliminating pensions for new hires.

None of these disastrous provisions were included in the final budget and we credit your activism and the collaboration with the Federal-Postal Coalition with their exclusion.

Still a Bad Deal for Working People

“While the APWU successfully defeated attacks on postal worker pay and retirement benefits make no mistake, this is not a good budget,” said President Dimondstein. “It calls for slashing trillions from domestic spending, and it would use those funds to finance a huge tax cut primarily for the richest in this country. In total, the budget calls for $1.5 trillion in cuts to Medicare and Medicaid.”

Congressional leaders are expected to unveil their tax reform bill as early as Nov. 1. Potential tax reform proposals already circulating appear to heavily favor the rich. One example is eliminating the estate tax, which only benefits individuals with estates worth than $5 million. Working people, on the other hand, could potentially see greater tax burdens due to proposals to tax workers’ 401(k) retirement contributions and eliminating deductions for state and local taxes.

In an analysis last month of the tax reform package, the Urban Institute found 80 percent of the tax benefits would go to the richest 1 percent. As income inequality continues to worsen across America, any attempt to pay for tax cuts for the wealthy elite out of the pockets or health care of working people is immoral and the APWU stands opposed to this Robin Hood in reverse.

“Lawmakers have proven time and again their appetite for balancing budgets and financing tax breaks for the rich on the backs of working families,” said Legislative and Political Director Judy Beard. “We must remain vigilant and ready to fight back.”