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Department of the Treasury – New

“Barack Obama will provide a tax cut for working families:

Obama and Biden will restore fairness to the tax code and provide 95 percent of working Americans the tax relief they need. They will create a new “Making Work Pay” tax credit of up to $500 per person, or $1,000 per working family.

Provide tax relief for small businesses and startups:

Obama and Biden will eliminate all capital gains taxes on startup and small businesses to encourage innovation and job creation.

Fight for fair trade:

Obama and Biden will fight for a trade policy that opens up foreign markets to support good American jobs. They will use trade agreements to spread good labor and environmental standards around the world.”

– Obama’s Blueprint for Change[1]

“Tax cuts and tax relief are excellent sound bites for a campaign but offer very little stimulus to the working Americans. Tax cuts and relief are not effective when they count as income – they are only deferred taxes.

The Department of the Treasury has a confused view of the economy when hundreds of billions of dollars go to corrupt corporate officials. It is the “hard working Americans” who drive the economy and deferring taxes on the working class while rewarding the highest paid by allowing them to keep their jobs is contradictory and nothing but campaign rhetoric.”

– Bryant Delaney, DOI2.com

This is a summary (yes a long page summary) of the thousands of pages the Department of Treasury provides to the public as a review and report card of their performance. The details can be found in a soon to be published book – “FAKE THE NATION” – The Peoples Last Stand.

The federal government reports 80% of federal program are performing when the data represents only 7% of the programs have reported current data and 60% of all programs haven’t reported any results in at least 3 years.

Every agency creates their own programs and provides an annual report of the results of each program. The Government Accountability Office (GAO) sets the parameters for these reports and claims 80% of all government programs are on target. If a private business only reported 7% accurate data, their leaders would be in jail. What about the leaders of the biggest business in America? Shouldn’t they be held accountable to the same rules and principles as private business?

“Fake the Nation” developed out of the frustration of seeing taxes increase year after year with no end in sight. The turning point for writing this book was when the federal government started running private businesses.

For the past 200 years, government has passed more and more rules on business creating a monster with 3 heads that affects every American. First, compliance with the rules and regulations is a cost that businesses pass on to the purchasers of their products. Second, the balance of international trade has regulated many businesses out of business. Third, the laws of Government have created a false sense of security creating the mentality that the Government is watching for bad business practices protecting American’s from corrupt business executives.

We define these basic principles in detail. But unlike most essays on the failure of government, Fake the Nation goes the extra mile to demonstrate proven business practices that will make the government operate efficiently.

To support American we do not need bigger government. We need leadership. It’s been said that “experience equals knowledge, the application of knowledge equals wisdom”. It is impossible to attain wisdom in a vacuum. If our leaders to not have the breadth and depth of experience they cannot apply their experiences to become wise.

The two party political system perpetuates the waste of American tax payer dollars. Fake the Nation tracks of $111 TRILLION of waste created because the federal government leadership doesn’t understand business – yet they now run the financial and automotive industries in America.

Fake the Nation provides proof of the problems and solutions to control the expenses of the federal government through 3 simple principles:

1. The federal government has no obligation to provide any service that can be provided by private business and/or state and local government. The federal government’s responsibility is only applied where the services would be duplicated by the majority of the states or where the services are for the protection on one state from the actions of another state.
2. State responsibilities only apply when the services offered by the State benefit all local level governments. State governments will not regulate any aspect of private business except to protect the rights of all citizens within the state.
3. Local governments shall have the responsibility to set the rules and laws for the citizens of their community. No state or federal law, rule or regulation shall dictate to the local governments except where the rules, laws or regulations adversely affect the lives of citizens within other local governments. This is not to be extended to include civil rights, only criminal activities

Department of Treasury– Current

Duties & Functions of the U.S.Department of the Treasury

Mission

Serve the American people and strengthen national security by managing the U.S. Government’s finances effectively, promoting economic growth and stability, and ensuring the safety, soundness, and security of the U.S. and international financial systems.

The Department of the Treasury’s mission highlights its role as the steward of U.S. economic and financial systems, and as an influential participant in the global economy.

The Treasury Department is the executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States. The Department is responsible for a wide range of activities such as advising the President on economic and financial issues, encouraging sustainable economic growth, and fostering improved governance in financial institutions. The Department of the Treasury operates and maintains systems that are critical to the nation’s financial infrastructure, such as the production of coin and currency, the disbursement of payments to the American public, revenue collection, and the borrowing of funds necessary to run the federal government. The Department works with other federal agencies, foreign governments, and international financial institutions to encourage global economic growth, raise standards of living, and to the extent possible, predict and prevent economic and financial crises. The Treasury Department also performs a critical and far-reaching role in enhancing national security by implementing economic sanctions against foreign threats to the U.S., identifying and targeting the financial support networks of national security threats, and improving the safeguards of our financial systems.

2008 has been a challenging year. The ongoing housing correction has reverberated throughout the U.S. financial system and severely impacted the U.S. economy. Lack of confidence among lenders and strained capital markets have made it harder to obtain student loans, home loans and business loans. Treasury has made significant efforts this year to address financial market difficulties and mitigate effects on the overall economy. The list below constitutes some of the actions taken by the Department:

· Led the government response to financial market challenges in coordination with federal, state and international authorities

· Participated in development and implementation of the Economic Stimulus Act of 2008

· Participated in development and implementation of the Emergency Economic Stabilization Act of 2008

· Helped homeowners by supporting creation of the HOPE NOW Alliance, the Hope for Homeowners program and expansion of the FHASecure program

· Contributed to placement of Fannie Mae and Freddie Mac in conservatorship

· Participated in finding solutions for troubled financial institutions

· Implemented measures to bolster regulation of national banks and thrift institutions

· Established a Temporary Guarantee Program for money market mutual funds

· Released the Blueprint for a Modernized Financial Regulatory Structure

· Participated in the development and implementation of temporary tax relief for mortgage holders

Before

· $15B Budget
100,000+ Employees

Score

· 13%

Score Summary

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Score Summary

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Performance Report Summary

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Objective 1 – Cash Resources Available to Run the Government

Objective 2 – Improved Economic Opportunity, Mobility and Security with Robust, Real Sustainable Economic Growth at Home and Abroad

Objective 3 – Trust and Confidence in U.S. Notes and Coins

Objective 4 – Pre-Empted and Neutralized Threats to the International Financial System and Enhanced U.S. National Security

Objective 5 – Enabled and Effective Treasury Department

Strategic Goals Summary

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Strategic Objective 1:

Cash Resources Available to run the Government

The Treasury Department manages the nation’s finances by collecting money due to the United States, making its pay­ments, managing its borrowing, investing when appropri­ate, and performing central accounting functions. Sound fiscal management enables continual operation of essential government services and allows the Department to meet its financial obligations while minimizing borrowing costs. Accurate projections of the U.S. Government’s cash re­quirements ensure that funds are available to cover federal payments on a daily basis. The ability of the Treasury to manage the nation’s finances is essential to maintaining the stability and integrity of the financial system.

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1.1 – Taxpayer Service and Revenue Processing

Internal Revenue Service

The IRS delivered another successful filing season in fiscal year 2008. The late enactment of the Alternative Minimum Tax legislation and the increased workload associated with the implementation of the Economic Stimulus Package posed unique challenges. Forms and systems changes and increased customer service volume coincided with normal preparations associated with delivering the filing season.

1.2 – Alcohol and Tobacco Tax and Trade Bureau

TTB, through its Collect the Revenue program, collects excise taxes associated with the sale of alcohol, tobacco, firearms, and ammunition. In fiscal year 2008, TTB collected $14.6 billion in federal taxes from 9,200 excise taxpayers. For every dollar expended by its program offices, TTB collected $313 in revenue. TTB has had relative success in promoting voluntary compliance from industry members through its educational outreach efforts, as evidenced by the 94 percent compliance rate for large excise taxpayers in fiscal year 2008.

1.3 – Financial Management Service

The FMS is responsible for managing the federal govern­ment’s collection system. In fiscal year 2008, FMS col­lected a record $3.195 trillion through a network of more than 9,000 financial institutions, 80 percent of which was collected electronically. FMS exceeded its collections from fiscal year 2007 by 2.6 percent. FMS is making significant progress towards achieving its long-term goal of having 90 percent of the dollar amount of all collections made electronically.

1.4 – Enforcement

The IRS’s enforcement activities are intended to encour­age compliance with tax laws. In fiscal year 2008, the IRS collected $56.4 billion through examination and collection enforcement activities; a decrease from $59.2 billion in 2007. (Much of the decrease can be associated with two large settlements in 2007, which inflated figures for that year.) From 2002 to 2008, the IRS has increased revenue from enforcement programs by 65 percent, yielding $56.4 billion in revenue in fiscal year 2008 versus a budget of $10.9 billion. The IRS met or exceeded 78 percent of its enforcement program targets, due to efforts focusing on tax evasion by corporations, high income taxpayers, and other major violators of the tax code. Targeting high-risk categories has improved efficiency, reduced burdens on compliant taxpayers, and focused enforcement presence where it is most needed

1.5 – International tax enforcement

Abusive tax avoidance transactions can appear on many types of tax returns and range from complex, structured corporate transactions that utilize multiple entities, to individual scams and schemes. The use of offshore entities and accounts is also common and the organized promo­tion of tax shelters makes them available to all types of taxpayers. The variety, size, and nature of tax shelters require an organized approach to detection, deterrence, and enforcement so that abusive transactions can be iden­tified and stopped.

1.6 -Tax-exempt entity compliance with tax statutes

The IRS also faced ongoing challenges in assisting tax-exempt and government entities in complying with the complicated rules for maintaining special tax status. The IRS continues to ensure that charitable organizations are not used for non-charitable or illegal purposes, including financing terrorist activities.

1.7 – Timely, and Accurate Payments at the Lowest Possible Cost

1.8 – Accurate, Timely, Useful, Transparent, and Accessible Financial Information

Strategic Objective 2:

Improved Economic Opportunity, Mobility, and Security, with Robust, Real Sustainable Economic Growth at Home and Abroad

Economic growth stimulates economic opportunity, mobili­ty, and security for Americans and others around the world. Promoting the development of new markets in the U.S. ensures that all Americans benefit from economic growth. The expansion of underdeveloped economies abroad opens markets, enhances regional stability, reduces the spread of disease, creates opportunities for profitable trade, and demonstrates democracy in action. Treasury promotes economic growth through direct and indirect regulation of financial markets; regulation of national banks and thrifts; implementation of policies promoting international trade, investment and economic security; programs encouraging investment in economically distressed communities; and policy initiatives directed at expanding the capacity of financial institutions to provide affordable credit, capital and financial services to the American people.

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2.1 –Assessing the Effectiveness of Economic Policy

The Department’s economic policy efforts can be separated into two categories: policy initiatives and established programs. The differences between them have largely to do with timing in the policy process. Policy initiatives generally include efforts to influence economic growth and financial market activity through the development of new legislation or government-wide policy. Substantial analyti­cal effort is used to understand a problem, develop alterna­tives and ultimately propose a legislative or administrative solution. Final legislation or administrative decision is then implemented by Treasury or other government agencies. Conversely, established programs are typically legislated to operate within an existing office, with specific objectives and defined management scope. These offices gener­ally manage government efforts related to a designated problem, within clearly defined missions and goals.

2.2- Assessing the Performance of Economic Policy Initiatives

Policy performance in addressing U.S. economic challenges was mixed. Turmoil in financial markets, the ongoing housing correction, and record high energy prices had substantial impact on economic performance in fiscal year 2008. Treasury, working with other federal agencies, state governments, other national governments, international organizations, and various private sector participants, took exceptional steps to address these challenges and work to prevent and mitigate financial and economic crises. Many of these efforts were successful; some were less successful than others.

2.3 – Strong U.S. Economic Competitiveness

Strong U.S. economic competitiveness is crucial for robust economic growth worldwide, continued investment in the United States, and job creation. The Treasury Department develops policies and programs intended to promote a prosperous financial infrastructure, a balanced macro economy, market efficiency, technological readiness, and innovation. For fiscal year 2008, Treasury generally met or exceeded its performance targets for established

2.4 Community Development Financial Institutions Fund

The Community Development Financial Institutions Fund provides grants and loans to financial institutions (Community Development Financial Institutions, or CDFIs) which provide capital, credit and financial services to underserved populations and economically distressed communities. Performance results for 2008 were mixed: 12 measures exceeded target levels and five measures did not meet target levels. The greatest shortfall, covering four of the five unmet measures, was in management of administrative costs.

2.5 – Alcohol and tobacco industry regulation

The TTB protects consumers of alcohol and tobacco prod­ucts from fraud and deception through industry regulation. Importers and bottlers of alcohol beverages are required by law to obtain a Certificate of Label Approval (COLA) or certificate of exemption from label approval from TTB for most alcohol beverages prior to introduction into the market. Through September 30, 2008, TTB processed 133,427 COLA applications. Sixty-two percent of applications were received electronically through COLAs Online, significantly beating the target of 52 percent and 2007 actual result of 51 percent.

2.6 Office of Financial Education

Treasury, through the Office of Financial Education, coordinates government efforts to promote financial education through outreach activities across the country. In fiscal year 2008, Treasury held several large events, including a major conference on banking the “unbanked” in New York City, two roundtables on multicultural issues, and an international conference including 43 countries from the Organization for Economic Co-operation and Development and the Organization of American States. Promotion of the MyMoney.gov and 1-888-MyMoney toll-free hotline resulted in 510,900 visits and 1,100 calls, respectively. On an inter-agency basis, the office supports initiatives by the President’s Advisory Council on Financial Literacy, which for fiscal year 2008 included issuance of new financial education curriculum for middle school and high school students, creation of a Community Financial Access Pilot to expand financial education in low- and moderate-income communities, and development of a baseline survey to examine financial literacy among U.S. adults.

2.7 Competitive Capital Markets

Prosperous capital markets play an important role in facili­tating economic growth by inspiring investor confidence and ensuring fair asset pricing. Treasury strives to preserve the integrity of the U.S. market, which is essential to maintaining competitiveness

2.8 Free Trade and Investment

Open foreign and domestic markets for goods and services are vital for a robust, growing and sustainable U.S. economy. While protectionism has strengthened over the last year, Treasury continues to work to maintain open markets for American products. For fiscal year 2008, Treasury met or exceeded its performance targets for established programs seeking to promote free trade and investment.

2.9 – Prevented or Mitigated Financial and Economic Crisis

Prevention and mitigation of financial and economic crises have obvious economic benefits. Treasury’s focused policy efforts to address financial and economic market conditions during fiscal year 2008 have been outlined in the sections above and the Management Discussion and Analysis. While Treasury generally met or exceeded its performance targets for established programs seeking to prevent or mitigate financial and economic crises, given troubled conditions at some national banks and thrifts, it is neces­sary to examine existing measure targets or establish new performance measures.

2.10 -Regulation of banks and thrifts

Market conditions in fiscal year 2008 have highlighted the importance of banks’ ability to identify, measure, manage, and control risk exposures. As discussed in the Management Discussion and Analysis, supervisory efforts at the OCC and OTS have emphasized the need for sound underwriting and credit administration at financial institutions, diversified sources of bank funding, strong internal controls and risk management systems, timely recognition of losses, and maintenance of adequate loan-loss reserves.

2.11 – Decrease Gap in Global Standard of Living

A decreased gap in the global standard of living, associated with improved economic conditions in emerging markets, improves economic opportunity for Americans. For fiscal year 2008, Treasury programs exceeded their performance targets related to decreasing the gap in the global standard of living.

Strategic Objective 3:

Pre-empted and Neutralized Threats to the International Financial System and Enhanced U.S. National Security

The Office of Terrorism and Financial Intelligence (TFI) is the only organization solely devoted to using financial intelligence to track, degrade, and disrupt threats to U.S. national security. Its unique capabilities leverage intelligence, law enforcement, sanctions, regulatory, and diplomatic tools to achieve Treasury’s strategic objective. It is imperative that potential threats to U.S. national security from financial and other support networks of terrorists, weapons of mass destruction (WMD) prolifera­tors, drug traffickers, rogue regimes, and other criminals be impaired. Keeping the world’s financial systems accessible to legitimate users and excluding those who wish to exploit these systems for illegal purposes ensures confidence in U.S. and international financial systems. If these systems are safeguarded and transparent, the ability of terrorists, drug traffickers, WMD proliferators, and other criminals to conceal illicit dealings will diminish.

3.1 – Remove or Reduce Threats to National Security from Terrorism, Proliferation, of Weapons of Mass Destruction, Drug Trafficking, and Other Criminal Activity on the part of Rougue Regimes, Individual and their support networks

3.2- Advancing U.S. Policy Gains Through the Financial Action Task Force (FATF) and other International Bodies

TFFC worked through the FATF, an entity that sets the global standards for combating terrorist financing and money laundering, to identify vulnerabilities in the financial system by issuing guidance, best practices, and recommendations. In

3.3 – Designated Terrorist Financiers

3.4 – Combating the Proliferation of WMD: Iran

Strategic Objective 4:

Enabled and Effective Treasury Department

The Department of the Treasury strives to maintain public trust and confidence through exemplary leadership by creating a culture of excellence, integrity, and teamwork. The Department is dedicated to serving the public interest and focused on delivering results that align with its strate­gic objectives. Management enables this through a strong institution that is citizen-centered, focused on achieving results, and transparent and accountable to the American people. Strategies to achieve this objective are aligning and managing resources, investing in people and technology, and conducting independent audits and investigations. The Treasury Department is committed to planning and assessing performance, reviewing results, and continuous improvement.

4.1 Citizens-Centered, Results Orientated and Strategically Aligned Organization

Organization

The Department of the Treasury is organized into two major components the Departmental offices and the operating bureaus. The Departmental Offices are primarily responsible for the formulation of policy and management of the Department as a whole, while the operating bureaus carry out the specific operations assigned to the Department. Our bureaus make up 98% of the Treasury work force. The basic functions of the Department of the Treasury include:

· Managing Federal finances;

· Collecting taxes, duties and monies paid to and due to the U.S. and paying all bills of the U.S.;

· Currency and coinage;

· Managing Government accounts and the public debt;

· Supervising national banks and thrift institutions;

· Advising on domestic and international financial, monetary, economic, trade and tax policy;

· Enforcing Federal finance and tax laws;

· Investigating and prosecuting tax evaders, counterfeiters, and forgers.

Organization Chart

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Departments:

• Domestic Finance advises and assists in areas of domestic finance, banking, and other related economic matters. It develops policies and guidance for Treasury Department activities in the areas of financial institutions, federal debt finance, financial regulation, and capital markets.
• Economic Policy reports on current and prospective economic developments and assists in the determination of appropriate economic policies. The office is responsible for the review and analysis of both domestic and international economic issues and developments in the financial markets.
• General Counsel provides legal and policy advice to the Secretary and other senior Departmental officials. The General Counsel also is the head of the Treasury Legal Division, a separate bureau within the Department that includes all legal counsels of the Treasury Department and their staff.
• International Affairs advises and assists in the formulation and execution of U.S. international economic and financial policy, including the development of policies with respect to international financial, economic, monetary, trade, investment, bilateral aid, environment, debt, development, and energy programs, including U.S. participation in international financial institutions.
• Management/CFO is responsible for the internal management and policy of the Department in the areas of budget, planning, human resources, information and technology management, financial management and accounting, procurement, and administrative services to Departmental (Headquarters) Offices.
• Public Affairs develops and implements communications strategy for the Department and advises officials within the Department and its bureaus how best to communicate issues and priorities of public interest.
• Tax Policy develops and implements tax policies and programs; reviews regulations and rulings to administer the Internal Revenue Code, negotiates tax treaties, provides economic and legal policy analysis for domestic and international tax policy decisions. It also provides estimates for the President’s budget, fiscal policy decisions, and cash management decisions.
• Terrorism and Financial Intelligence (TFI) develops and implements U.S. government strategies to combat terrorist financing domestically and internationally, develops and implements the National Money Laundering Strategy as well as other policies and programs to fight financial crimes.
• Treasurer of the United States advises the Secretary on matters relating to coinage, currency and the production of other instruments by the United States. The Treasurer also serves as one of the Treasury Department’s principal advisors and spokespersons in the area of financial literacy and education.

Bureaus:

• The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible for enforcing and administering laws covering the production, use, and distribution of alcohol and tobacco products. TTB also collects excise taxes for firearms and ammunition.
• The Bureau of Engraving & Printing (BEP) designs and manufactures U.S. currency, securities, and other official certificates and awards.
• The Bureau of the Public Debt borrows the money needed to operate the Federal Government. It administers the public debt by issuing and servicing U.S. Treasury marketable, savings and special securities.
• The Community Development Financial Institution (CDFI) Fund was created to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities.
• The Financial Crimes Enforcement Network (FinCEN) supports law enforcement investigative efforts and fosters interagency and global cooperation against domestic and international financial crimes. It also provides U.S. policy makers with strategic analyses of domestic and worldwide trends and patterns.
• The Financial Management Service (FMS) receives and disburses all public monies, maintains government accounts, and prepares daily and monthly reports on the status of government finances.
• The Inspector General conducts independent audits, investigations and reviews to help the Treasury Department accomplish its mission; improve its programs and operations; promote economy, efficiency and effectiveness; and prevent and detect fraud and abuse.
• The Treasury Inspector General for Tax Administration (TIGTA) provides leadership and coordination and recommends policy for activities designed to promote economy, efficiency, and effectiveness in the administration of the internal revenue laws. TIGTA also recommends policies to prevent and detect fraud and abuse in the programs and operations of the IRS and related entities.
• The Internal Revenue Service (IRS) is the largest of Treasury’s bureaus. It is responsible for determining, assessing, and collecting internal revenue in the United States.
• The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises national banks to ensure a safe, sound, and competitive banking system that supports the citizens, communities, and economy of the United States.

The Office of Thrift Supervision (OTS) is the primary regulator of all federal and many state-chartered thrift institutions, which include savings banks and savings and loan associations.

The U.S. Mint designs and manufactures domestic, bullion and foreign coins as well as commemorative medals and other numismatic items. The Mint also distributes U.S. coins to the Federal Reserve banks as well as maintains physical custody and protection of our nation’s silver and gold assets.

Challenges:

Treasury-Wide Management Challenges

Management Challenges	Importance	Progress	Status
Management of Treasury’s Authorities Related to Distressed	Protection of the taxpayer from unnecessary risk associated	New	New
Financial Markets	with the implementation of the program
Regulation of National Banks and Thrifts	Prevent or better mitigate unsafe and unsound practices and protect the financial health of the banking industry	New	New
Corporate Management	Overall agency performance/improved value for the taxpayer	Reasonable	Adequate
Management of Capital Investments	Effective use of taxpayer funds for large capital investments	Significant	Meets Expectations
Information Security	Appropriate protection of electronic information and cyber	Significant	Meets
	assets		Expectations
Linking Resources to Results	Resources that are focused on producing the best value for	A cost accounting policy revision	Closed
	stakeholders	and changes to operations
		allowed removal of challenge
Anti-Money laundering and Terrorist Financing/BSA Reporting	U.S. and international financial systems are safe	Reasonable	Meets Expectations

IRS Management Challenges

Management Challenges	Importance	Progress	Status
Modernization of the Internal Revenue Service (Computerized	Improved taxpayer service and efficiency of operations	Reasonable	Meets
Systems and Business Structure) and IRS Business Systems			Expectations
Tax Compliance Initiatives	Improved compliance and fairness in the application of the	Reasonable	Meets
	tax laws		Expectations
Security of the Internal Revenue Service	Appropriate protection of financial, personal, and other	Reasonable	Meets
	information		Expectations
Providing Quality Taxpayer Service Operations	Improved taxpayer service	Significant	Exceeds Expectations
Human Capital	Enables the IRS to achieve its mission	Significant	Exceeds Expectations
Erroneous and Improper Payments	Effective use of taxpayer funds	Reasonable	Adequate
Taxpayer Protection and Rights	Fairness in the application of the tax laws	Significant	Meets Expectations
Processing Returns and Implementing Tax Law Changes During	Improved taxpayer service and efficiency of operations	Significant	Exceeds
the Tax Filing Season			Expectations
Using Performance and Financial Information for Program and	Resources that are focused on producing the best value for	Significant	Exceeds
Budget Decisions	stakeholders		Expectations