Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20
Silver Springboards Higher – What’s Next? - 26th May 20
Stock Market Key Resistance Breakout Is Where the Rubber Meets the Road - 26th May 20
5 Ways To Amp Up Your CFD Trading Today - 26th May 20
The Anatomy of a Gold Stock Bull Market - 26th May 20
Stock Market Critical Price Level Could Soon Prompt A Big Move - 25th May 20
Will Powell Decouple Gold from the Stock Market? - 25th May 20
How Muslims Celebrated EID in Lockdown Britain 2020 - UK - 25th May 20
Stock Market Topping Behavior - 24th May 20
Fed Action Accelerates Boom-Bust Cycle; Not A Virus Crisis - 23rd May 20
Gold Silver Miners and Stocks (after a quick drop) Ready to Explode - 23rd May 20
3 Ways to Prepare Financially for Retirement - 23rd May 20
4 Essential Car Trade-In Tips To Get The Best Value - 23rd May 20
Budgie Heaven at Bird Land - 23rd May 20
China’s ‘Two Sessions’ herald Rebound of Economy - 22nd May 20
Signs Of Long Term Devaluation US Real Estate - 22nd May 20
Reading the Tea Leaves of Gold’s Upcoming Move - 22nd May 20
Gold, Silver, Mining Stocks Teeter On The Brink Of A Breakout - 21st May 20
Another Bank Bailout Under Cover of a Virus - 21st May 20
Do No Credit Check Loans Online Instant Approval Options Actually Exist? - 21st May 20
An Eye-Opening Perspective: Emerging Markets and Epidemics - 21st May 20
US Housing Market Covid-19 Crisis - 21st May 20
The Coronavirus Just Hit the “Fast-Forward” Button on These Three Industries - 21st May 20
AMD Zen 3 Ryzen 9 4950x Intel Destroying 24 core 48 thread Processor? - 21st May 20
Dow Stock Market Trend Analysis and Forecast - 20th May 20
The Credit Markets Gave Their Nod to the S&P 500 Upswing - 20th May 20
Where to get proper HGH treatment in USA - 20th May 20
Silver Is Ensured A Prosperous 2020 Thanks To The Fed - 20th May 20
It’s Not Only Palladium That You Better Listen To - 20th May 20
DJIA Stock Market Technical Trend Analysis - 19th May 20
US Real Estate Showing Signs Of Covid19 Collateral Damage - 19th May 20
Gold Stocks Fundamental Indicators - 19th May 20
Why This Wave is Usually a Market Downturn's Most Wicked - 19th May 20
Gold Mining Stocks Flip from Losses to 5x Leveraged Gains! - 19th May 20
Silver Price Begins To Accelerate Higher Faster Than Gold - 19th May 20
Gold Will Soar Soon; World Now Faces 'Monetary Armageddon' - 19th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Effects of U.S. Government Shutdown on Paying Taxes and Economic Reports

Politics / US Politics Oct 07, 2013 - 12:02 PM GMT

By: Money_Morning

Politics

Garrett Baldwin writes: Welcome to the decade of the politicization of everything. With the government shutdown in its first week, it is starting to look more and more like this temper tantrum from both sides could lead up to the debt ceiling deadline.


Government shutdown effects include as many as 800,000 workers (38% of the federal workforce) being furloughed. However, if there ever was a time to put on display the bloat and uselessness of many parts of the federal government, now it is fully on display. Just this week, the Internal Revenue Service (IRS) furloughed 9 of every 10 workers, deeming them non-essential employees.

Imagine what a flat tax would do to the agency...

The shutdown will affect every federal agency and any building or space with the federal stamp on it. National Park Service sites and multiple museums have been shuttered. Foreign travelers will be unable to get their visas or passport application approved, bankruptcy cases will be suspended until further notice, and military personnel and veterans will be unable to acquire their benefits.

Meanwhile, the Environmental Protection Agency deemed only 6% of its workforce essential.
The shutdown was certainly going to display the multiple layers of waste in Washington.

However, there are a few important government reports that could pose problems for the markets and lead to some wild swings when figures are ultimately released.

Here's a rundown of what investors will be missing this month as the government shutdown effects play out.

Effects of the Government Shutdown

  • The Bureau of Labor Statistics provides important data in the form of unemployment, wages, and other vital statistics on the U.S. economy. However, the department has shut down. Given that the White House shut down open-space memorials this week, it's possible that the Obama administration may not authorize the release of the department's highly anticipated September jobs report.
  • Did you pay your taxes? Many Americans delay their April taxes (particularly small business owners given new rules and regulations this year) until October. But if you're going up against the Oct. 15 deadline, it could be a bit difficult. Taxes will still be due, but the IRS is suspending audits. And if you have any questions, bad news. All taxpayer services, including its question and answer hotlines, will be turned off until further notice.
  • With the Commerce Department shut down, the Bureau of Economic Analysis may not be able to release its first estimate of third-quarter gross domestic product. The report is due on Oct. 30, but given the time it takes to prepare, we may not see figures until halfway into November.
  • The Census Bureau is set to report a number of economic reports this week. These reports include August factory orders, the August U.S. trade deficit, and August business inventories.

The stock market has reacted negatively because of the shutdown and concerns about the country's debt ceiling. The Dow has slipped triple digits in afternoon trading.

However, it is important to recognize that we've been here before, and history suggests that this time is no more different than the last.

No one expects the government to default on its debt. We're just watching a game of chicken while the markets begin to panic a bit. No doubt, this will lead to a can being kicked back down the road.

In fact, the shutdown will provide some buying opportunities, so long as you keep your emotions in check and know exactly where to look. That's why you should read this piece in Money Morning on why this shutdown will be good for retail investors and the opportunities that it will create.

Source :http://moneymorning.com/2013/10/03/government-..

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules