22. Department Of The Treasury (Summary)

Authors: William L. Walton, Stephen Moore, and David R. Burton

Summary

• Introduction: The U.S. Treasury Department holds a significant regulatory and policy influence. The chapter outlines major policy changes for the incoming Administration to focus on economic growth, fiscal responsibility, reducing regulatory costs, and protecting due process and privacy rights. This involves actions through executive orders, departmental reorganization, rulemakings, legislative promotion, international engagement, and treaty negotiations.
• Biden Administration’s Treasury Department: The chapter criticizes the Biden Administration’s Treasury Department for its failure to achieve core objectives, including economic stability and growth. The national debt increased by over $4 trillion, and inflation risked the stability of U.S. currency. The department’s focus on “equity” and “climate change” is seen as a diversion from its primary mission.
• Treasury Department Organization: The chapter details the structure of the Treasury Department, including its offices, bureaus, and inspectors general. It emphasizes the role of the IRS and other bureaus in carrying out specific operations critical to the department’s mission.
• Tax Policy: The chapter advocates for significant tax reform to promote economic growth, reduce compliance costs, and enhance fairness. Proposals include simplifying the tax code, reducing corporate tax rates, introducing Universal Savings Accounts, and encouraging entrepreneurship. The chapter also discusses the need for fundamental tax reform, including the potential adoption of a consumption tax.
• Tax Administration: The chapter calls for reforming the IRS, citing its inefficiencies and politicization. It recommends increasing presidential appointments within the IRS, improving IT systems, and better protecting taxpayer rights and privacy.
• International Affairs: The chapter advises withdrawing from international tax agreements that could increase transnational crime and reduce financial privacy. It also recommends ending U.S. financial support for the OECD, World Bank, and IMF, advocating for unilateral economic assistance instead.
• Fiscal Responsibility: Emphasizing the need for a balanced federal budget, the chapter suggests reducing federal spending, locking in low interest rates on debt, and increasing transparency through annual financial statements to U.S. citizens.
• International Competitiveness: The chapter argues for a more assertive U.S. role in international financial institutions to protect national interests. It suggests leveraging U.S. contributions to these institutions to promote reforms.
• China and Geopolitical Threats: The chapter calls for a realignment of the Committee on Foreign Investment in the United States (CFIUS) to address national security threats from China. It suggests developing clear rules for CFIUS enforcement, increasing DOD involvement, and closing loopholes on Chinese greenfield investments.
• Improved Financial Regulation: The chapter advocates restructuring the financial regulatory system to promote innovation, reduce costs, and eliminate outdated regulations. It calls for merging certain regulatory functions and revising Dodd-Frank provisions to reduce “too big to fail” risks.
• Anti-Money Laundering and Beneficial Ownership Reporting Reform: The chapter criticizes FinCEN’s economic impact and lack of transparency, recommending annual data publication on AML-CFT activities and repealing the Corporate Transparency Act.
• The “Equity” Agenda: The chapter opposes the Biden Administration’s focus on equity within the Treasury, calling for the elimination of related offices and initiatives.
• Climate-Related Financial Risk: The chapter criticizes Treasury’s focus on combating climate change, recommending the elimination of the Climate Hub Office and withdrawal from international climate agreements that harm U.S. prosperity.
• Other Reforms: The chapter suggests returning law enforcement agencies like the U.S. Coast Guard and ATF to Treasury control and eliminating the U.S. Trade and Development Agency, arguing these functions are better handled by the private sector.

Analysis

• Positive Ramifications:
  • Promoting economic growth and stability through reduced regulation and tax reform.
  • Enhancing U.S. international competitiveness by realigning priorities in global financial institutions.
  • Increasing fiscal responsibility through budget balancing and debt management strategies.
• Negative Ramifications:
  • Potential reduction in government services due to decreased spending and regulatory rollback.
  • International isolation if the U.S. withdraws from global financial institutions and treaties.
  • Social and environmental risks if equity and climate-related initiatives are dismantled.

Tags

• Fiscal Responsibility
• Tax Reform
• International Competitiveness
• Geopolitical Threats
• Financial Regulation

Read the original chapter text here: https://static.project2025.org/2025_MandateForLeadership_FULL.pdf#page=724

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