Government Shutdown: Irritating But Little Impact

Everyone I talk to, including every client and advisor, expects “fallout” in various ways.

The most obvious would be a reduction or suspension in non-essential services such as parks, monuments and so forth. This will reduce traffic in certain areas of the country, with the attendant reduction in business.

Of slightly greater concern is the reduction in administrative services for licenses, visas, passports and the like, which will slow down international commerce as well those who depend on federal licensure to do business (pilots and Enrolled Agents come to mind, as I am both of those). The IRS is essentially shutting down regular random audits. This might cause a rise in fraudulent tax return filing or filing returns taking an aggressive tax position. The FAA will close selected towers, and furlough/reduce ATC controller staffing, which will slow down airline travel.


All in all, a government shutdown would be a major irritant, but would not have much impact on our clients or commerce in general. History supports this position. Since 1976...

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