The Department of Treasury

By Gabriel Perez

What is the Department of Treasury

The Department of the treasury (DoT) is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue.

What does the Treasury do

Treasury's mission highlights its role as the steward of U.S. economic and financial systems, and as an influential participant in the world economy. The Treasury depatment is the executive agency responsible for promoting economic prosperity and ensuring the financial security of the United States

A little transaction with the Treasury

The Bureau of the Public Debt was established on June 30, 1940, pursuant to the Reorganization Act of 1939 (31 U.S.C.A. § 306). Its mission is to borrow the money needed to operate the federal government, account for the resulting public debt, and issue treasury securities to refund maturing debt and raise new money.

The bureau fulfills its mission through six programs: commercial book-entry securities, direct access securities, savings securities, government securities, market regulation, and public debt accounting. The bureau issues and auctions treasury bills, notes, and bonds and manages the U.S. Savings Bond Program.

In addition, the bureau implements the regulations for the government securities market. These regulations provide for investor protection while maintaining a fair and liquid market for government securities.

Current events with the Treasury

The Treasury Department and the IRS on Thursday issued new rules aimed at discouraging American companies from moving their headquarters abroad in search of lower tax rates.

Increasingly, American companies have been trying to reduce their tax liabilities through a tactic known as a corporate inversion — buying smaller foreign competitors and using those purchases to move their headquarters to countries with more favorable tax rates than the United States’.

The new measures will make that more difficult by curtailing companies’ ability to avoid United States tax rates if they move to locations where they lack substantial business activity.

Yet one of the potential targets of the treasury Department’s actions, the giant pharmaceutical company Pfizer, is already weighing ways to bypass the rules governing inversions as it seeks to buy a fellow drug maker, Allergan, which is based in Ireland, for about $150 billion.

Among the strategies it is discussing is structuring the potential transaction so that Allergan would technically be the buyer, according to a person briefed on the matter who spoke on the condition of anonymity. Because Allergan’s headquarters are already in Ireland — even though much of its operation is based in New Jersey — the arrangement could allow the deal-Nov 19-2015