Economist Peter Schiff Suggests Suspending Taxes During Government Shutdown
A government shutdown looms if lawmakers don’t crank out a funding deal, and noted economist Peter Schiff had an interesting take on a potential lack of agreement.
“There would be widespread support for a government shutdown if during any shutdown all federal taxes were suspended and any taxes not paid during the shutdown would be legally forfeited by the government. If government shuts down services, they should also shut down taxes,” said Schiff in a post on X, formerly Twitter.
“If government shuts down services, they should also shut down taxes!” he added.
Why It’s Important: The U.S. government needs an approved budget to underwrite federal government operations when the new fiscal year begins on Oct. 1.
A lack of funding deal that would facilitate the passing of the 12 appropriations bill by the Sept. 30 deadline will likely result in a government shutdown, although such a predicament is seen as less likely.
During a shutdown, the government is precluded from spending money on non-essential items and can only take care of essential services such as law enforcement and public safety. Delays in paychecks for federal employees and furloughing of some may follow.
“Recreational facilities funded by the federal government including public places, parks, etc., also face the risk of shuttering in the event of a no-deal. If the shutdown persists for a longer period, federal safety-net programs such as food stamps may have seen trimmed spending,” said Benzinga.
The previous government shutdown was in December 2018 when most government activity ground to a halt for 34 days.
The impasse stems from the opposition by the hard-right House Republicans and House Speaker Kevin McCarthy (R-Calif) hasn’t been able to bring his party on the same plane.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by Judy J. Rotich and Newsdesk Manager
