SalemNews.com, Salem, MA

The Nation

April 6, 2011

Obama administration: Shutdown would hurt economy

WASHINGTON — Warning of economic repercussions, the Obama administration said Wednesday that a government shutdown would halt the processing of tax returns and limit small business loans and government-guaranteed mortgages during peak home buying season.

The administration said that the Internal Revenue Service would suspend the processing of paper tax returns, though it would continue to deal with electronic returns. The Federal Housing Administration, which guarantees about 30 percent of home mortgages, would stop guaranteeing loans.

Social Security and Medicare beneficiaries would continue to receive benefits.

The administration described shutdown planning as congressional negotiators continued to work to strike a deal that sets spending limits through the end of September. Negotiators have until Friday to reach an agreement before triggering a shutdown.

The administration sought to put a human face on the fallout of a shutdown, casting it as a potential blow to the economic recovery.

Among other consequences cited by the administration:

—The Environmental Protection Agency would cease issuing permits and stop reviewing environmental impact statements which will slow approval of projects.

— Military personnel would not get paid beyond Friday, but would continue to earn money that would be paid to them once the government resumes.

— National parks would be closed.

— Most government websites would not be updated, unless they were deemed essential

1
Text Only | Photo Reprints
The Nation

AP Video
At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City Broken Water Main Floods UCLA Raw: Japanese Soldiers Storm Beach in Exercises In Virginia, the Rise of a New Space Coast Two Women Narrowly Avoid Being Hit by Train NCAA Settles Head-injury Suit, Will Change Rules Jury Awards Ventura $1.8M in Defamation Case Crayola Announces Family Attraction in Orlando Raw: NH Man Held on $1M in Teen's Kidnapping New Sanctions on Key Sectors of Russian Economy Senate Confirms McDonald As VA Secretary Kerry: Not Worried About Israeli Criticism US Ready to Slap New Sanctions on Russia Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Fish Oil Plant Blast Kills One Two Huge Fires Burning in Northern California
NDN Video
Weird 'Wakudoki' Dance Launches Promotional Competition Sadie Doesn't Want Her Brother to Grow Up Chapter Two: Designing for Naomi Watts Broken Water Main Floods UCLA "Maxim" Hotness! See Jessica Alba's Sizzling Spread Two women barely avoid being hit by train Orlando Bloom and Justin Bieber Reportedly Came To Blows In Ibiza Meet the Man Behind Dumb Starbucks Chris Pratt Adorably Surprises Kids at a 'Guardians of the Galaxy' Screening NOW TRENDING: Peyton Manning dancing at practice "The Bachelorette" Makes Her Decision Thieves pick the wrong gas station to rob Golden Sisters on '50 Shades' trailer: 'Look At That Chest!' Staten Island Man's Emotional Dunk Over NYPD Car - @TheBuzzeronFOX GMA: Dog passes out from excitment to see owner Baseball Hall of Famers Inducted 'Hunger Games: Mockingjay Part 1' Sneak Peek Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show' Robin Wright Can Dance! (WATCH)