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Federal prison workers frustrated by shutdown

Federal prison workers are frustrated with the government shutdown, with one employee adding that the prison budgets don't work like the government, meaning if they have $5, they have to figure out how to feed inmates for $5.

Posted: Jan 9, 2019 11:10 AM
Updated: Jan 9, 2019 11:15 AM

The US Chamber of Commerce had a message for Congress on Tuesday: End the shutdown.

"The shutdown is harming the American people, the business community, and the economy," Chamber executive vice president Neil Bradley wrote in a letter to Congress. "The adverse consequences of the shutdown are wide and growing."

The closure of key government agencies comes as American business owners are struggling to deal with the fallout of President Donald Trump's trade wars, as well as increased market volatility and growing economic uncertainty.

Trump has said the shutdown could last for months -- or years -- and while it most immediately affects government workers and federal contractors who aren't getting paid, it has created severe challenges for businesses that depend on government data, licensing or other functions.

Farmers, for example, would normally be looking to a monthly report on the supply and demand of agricultural products around the world to help determine what to plant next season. But the next report won't come out as scheduled on January 11 if the US Department of Agriculture remains unfunded.

Businesses that rely on monthly export and import data missed an update Tuesday because the Commerce Department isn't fully operating either. And US businesses that import steel and aluminum and are seeking an exclusion from Trump's tariffs may have to wait longer to hear if their application has been approved, because those applications are also handled by the Commerce Department.

The shutdown also poses challenges for industries that need approval from the federal agencies temporarily shuttered. Pending company mergers, for example, are being slowed because the Securities and Exchange Commission isn't fully staffed.

Breweries trying out new craft beers are stuck, too, because the Alcohol and Tobacco Tax and Trade Bureau, which must sign off on all new labels and packaging, has been shut down.

The list of nuisances goes on. The Internal Revenue Service isn't staffed to take questions from employers that must send out W-2s to workers by the end of January, or businesses who have questions about changes under the new tax law.

Employers will also have to wait until the shutdown is over to use the online E-Verify system to confirm whether applicants have a legal right to work in the United States. It doesn't prevent someone from starting to work, but prolongs the on-boarding process -- and opens up the risk that companies may have to let go of employees who don't later pass the check, even if they've already started working.

Trump's efforts to overhaul the global trading system has already strained some business owners and farmers. He's said that he wants foreign countries to change their practices and treat Americans fairly, but despite what the President has often suggested, it's not China that's paying for the tariffs but US importers. The duties have raised the price of goods ranging from foreign steel and aluminum to Chinese-made semiconductors and luggage for American companies.

Some businesses, like Missouri-based Cap America, have had to start paying a 10% tariff on a majority of their inventory because it comes from China. The company made most of their baseball caps in-house (and was appropriately named) until 2001, but it became cheaper to buy them from China. Now, about 89% of the caps sold in the United States comes from China. Cap America then embroiders them here.

In December, the company had to set prices for 2019 without knowing if there would be a 10% or 25% tariff on their imports. Trump had threatened to raise the tariff rate to 25% on January 1, but put off the hike while he and Chinese President Xi Jinping agreed to a 90-day truce that ends in March.

Phil Page, chairman and CEO of Cap America, said he doesn't expect to know how his price increase will affect demand until the end of the first quarter.

"It's the uncertainty that causes the most stress in this situation," he said.

Retaliatory tariffs imposed by other countries have closed off some markets to American farmers. China stopped buying American soybeans for about six months, though purchases restarted in December. Mexico put tariffs on American pork and Canada imposed duties on beef.

A new trade deal struck between the United States, Mexico and Canada to replace the North American Free Trade Agreement has offered some reassurance to farmers that markets to the North and South would remain open to trade.

But even though Trump and his counterparts signed the deal in December, it must still be approved by Congress where leaders from the Democratically controlled House have voiced concerns about its labor and environmental provisions.

Lawmakers are expected to wait for an economic impact study before taking a vote, but it's unlike that will come before mid-March. It's being done by the US International Trade Commission, which has suspended investigative activities during the shutdown. Plus, Trump has threatened to withdraw from the original deal in the meantime, which could invite more tariffs on US goods and risk an economic shock.

Despite the new trade deal, the retaliatory tariffs will remain in place while Trump keeps duties on foreign steel and aluminum. Many businesses and farmers have urged the administration to lift those taxes.

In the interim, the US Department of Agriculture has offered some financial aid to farmers hurt by the tariffs -- but it's not processing new applications during the shutdown. The agency said Tuesday that it would extend the application deadline by the number of days the government remains shut down, but won't pay out money until Congress votes to reopen.

"Uncertainty is a problem," said Brian Duncan, who grows corn and soybeans and raises hogs in Illinois. "We deal with enough uncertainty, the weather, the wind, snow, you name it. When you add more layers of uncertainty, it makes business more difficult."

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Alabama Coronavirus Cases

Confirmed Cases: 41362

Reported Deaths: 983
CountyConfirmedDeaths
Jefferson4532143
Montgomery3875102
Mobile3797134
Tuscaloosa210739
Marshall162210
Lee124537
Shelby110923
Madison11047
Morgan10203
Walker87123
Franklin86314
Dallas8419
Elmore83614
Baldwin7359
Etowah64413
DeKalb6415
Butler60727
Chambers60027
Tallapoosa57269
Autauga55312
Unassigned50724
Russell5030
Lowndes45820
Lauderdale4576
Houston4464
Limestone4290
Cullman4114
Pike4075
Colbert3775
Bullock3649
Coffee3592
Barbour3331
Covington3327
St. Clair3192
Marengo29911
Hale29621
Escambia2936
Wilcox2848
Talladega2827
Calhoun2805
Sumter27912
Clarke2686
Dale2620
Jackson2522
Winston2373
Blount2181
Pickens2176
Chilton2152
Marion20613
Monroe2052
Choctaw19212
Randolph1889
Conecuh1866
Greene1788
Macon1778
Bibb1761
Perry1541
Henry1303
Crenshaw1243
Washington1027
Lawrence1000
Cherokee797
Lamar711
Geneva700
Fayette671
Clay612
Coosa571
Cleburne301
Out of AL00

Tennessee Coronavirus Cases

Confirmed Cases: 46890

Reported Deaths: 620
CountyConfirmedDeaths
Shelby10765195
Davidson10125115
Rutherford273335
Hamilton257730
Sumner150752
Trousdale14905
Williamson114814
Knox10225
Out of TN10098
Wilson85917
Putnam8147
Robertson80111
Sevier7333
Lake6900
Tipton6205
Bledsoe6181
Bradley6043
Bedford5205
Unassigned5161
Montgomery5137
Macon4213
Hardeman3143
Maury3113
Fayette3012
Hamblen2964
Rhea2740
Loudon2711
Madison2642
Dyer2321
Cheatham2201
McMinn21817
Blount2053
Dickson1940
Cumberland1744
Lawrence1435
Lauderdale1362
Monroe1365
Washington1340
Jefferson1210
Coffee1150
Gibson1101
Obion1062
Anderson1052
Hardin1037
Smith1031
Sullivan1012
Greene862
Franklin823
Haywood812
Wayne800
Cocke760
Marshall741
Hickman730
Warren690
Marion674
White653
McNairy640
Weakley621
Grundy581
Lincoln580
Overton581
DeKalb570
Carter561
Giles551
Hawkins552
Unicoi550
Roane500
Henry420
Campbell411
Polk410
Carroll401
Grainger390
Henderson390
Johnson380
Cannon340
Claiborne320
Crockett323
Meigs320
Perry310
Sequatchie290
Chester260
Humphreys261
Jackson260
Morgan241
Decatur210
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Fentress190
Clay160
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Union150
Houston130
Benton121
Moore100
Lewis70
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Pickett60
Hancock30

 

 

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