Elections bring millions in revenue to U.S. Postal Service

DENVER - Postal reform still sits in Congress' dead letter office, but politicians are doing something to keep the U.S. Postal Serviceafloat: They're spending millions of dollars on direct mail this election.

The Center for Responsive Politics reports the postal service has been paid $17.5 million so far this election cycle for delivering political direct-mail pieces, ranking it No. 4 on the center's list of political vendors. This revenue won't close the postal service's fiscal gap — it lost $2 billion last quarter — but every little bit helps.

The No. 1 vendor is Waterfront Strategies, which has spent nearly $42 million on media buys on behalf of Democratic candidates, with most of this money coming from liberal super PACs. Waterfront is part of Washington, D.C.-based GMMB, the ad agency for President Barack Obama's presidential campaigns.

Automatic Data Processing is No. 2 on the list, with $22 million in payments from political groups. That demonstrates that campaigns, like businesses, often get outside help to handle payroll services. It also shows that the campaign industry employs a fair number of people — theInternal Revenue Service ranked No. 7 on the political vendor list because it's received more than $13 million in payroll taxes from political campaigns.

Read more at the Denver Business Journal

(© 2014 American City Business Journals. All rights reserved)


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