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20190111

The "government shutdown" in the USA is having some unexpected consequences.

You can't sell beer without approved labels

It's time the Government departments began to hypothecate fees they collect and apply them to the benefit of the people that are paying for a service. The Susquehanna Brewing Company has a new product ready and all it needs is to put it in bottles, stick labels on them and send them out through their distribution channels. But they can't because beer labels must be approved by the The Alcohol and Tobacco Tax and Trade Bureau (part of the IRS) and they're not doing their jobs because the department is not being funded from Federal moneys, no matter that applicants have paid a fee for the approval.

https://wnep.com/2019/01/10/br...

 

Let them eat.. whatever they find in the bins

The Food Stamps scheme operated by the US Federal Government is under threat with one report saying that as much as 95% of their activities are to be curtailed.

https://wnep.com/2018/12/26/sh...

In the 2013 shut-down, the previous one of similar length, The Federal Communications Commission reportedly put some 98% of its staff on unpaid leave.

 

Tech companies who supply government will find payments stop

Companies like Oracle, Microsoft and Red Hat all rely on government work for revenue, analysts say. As the government shut-down drags on, these companies could take a hit to their revenue.

https://www.cnbc.com/2019/01/0...

 

Wall Street faces problems as SEC approvals dry up

Uber and Lyft, two internet darlings, are planning IPOs: they are amongst many who are seeing approvals dry up as their applications progress through the federally funded Securities and Exchange Commission and so, obviously, do the investment bankers who expect to make shed loads of dosh off what might otherwise be a very easy listing.

https://www.linkedin.com/in/ke...

 

"File your tax returns even though we won't act on them

The USA's Infernal Revenue Service (see what we did, there?) is a labyrinthine organisation. While popular attention is focussed on the fact that tax relief won't be calculated and refunds paid during the shut-down, there will be no audits but prosecutions are likely to continue, at least for the time being. Because counters and call centres are closed, the IRS is not issuing e.g. tax statements that can be used to support mortgage applications. Also of particular interest to readers of our financial crime sections, FinCEN and OFAC are operating at much reduced capacity. In the last big shutdown, 90% of The Office of Terrorism and Financial Intelligence and FinCEN put at least 90% of their staff on unpaid leave.

 

 


 

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