“A shutdown would demonstrate the significant constraints that political polarization continues to place on tax policy,” according to Moody’s. MANDEL NGAN/AFP
DECRYPTION – Sunday October 1, due to lack of voted appropriations, the suspension of the functioning of the American government should take place. For what results?
Unless there is a surprise, Saturday evening at midnight, Washington time, the American federal government will no longer have the funds necessary to pay its employees, its suppliers and carry out its ordinary functions due to lack of agreement in Congress. For the fourth time in ten years, it will be the return of the “shutdown”, on this first day of October which marks the start of the American tax calendar. For a few hours or for a few days? The last episode dates back to December 2018. It lasted thirty-five days. A record.
The “shutdown” should not be confused with a Treasury default, which threatened in June, but never happened, and would be much more catastrophic. What threatens this Sunday is the suspension of the functioning of the government, for lack of voted appropriations. The “shutdown” does not prevent Uncle Sam from honoring his debts or paying retirees and social security workers.
On the other hand, it puts thousands of civil servants on technical unemployment and suspends the work of…
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