January 10th, 2018
the United States Treasury Department – Rulemaking Areas of the Agency
The department of the Treasury through its various bureaus engages in rule-making processes. For instance, the internal revenue service develops the regulation relating to revenue collection aspects such as reporting guidelines with regard to various categories of incomes, businesses and reliefs offered for income tax (e.g. IRS, 2012). The Alcohol and Tobacco Tax and Trade Bureau is also involved in the formulation of rules regarding taxation of Alcohol and tobacco businesses and establishing and enforcing permits for such businesses. Other bureaus of the department of the Treasury involved in rulemaking processes include the OCC, which is involved in the establishment and enforcement of regulations for the national banks, and federal savings associations (OCC, 2012).
The failure of the department in its rulemaking approaches is evident from the failure of multiple banking institutions during the recent financial crisis. Together with other independent agencies such as the Federal Reserve, the OCC failed to provide adequate regulatory framework leading to the formation of financial institutions that were highly susceptible to failure (Weiss & Larson, 2008). Another failure of the entity has been in implementing programs that have failed to generate the desired results while reducing government’s revenue. An example of such programs is the tax breaks provided on mortgages to enhance home ownership among the low-income groups. Instead of encouraging home ownership in such a group, the tax breaks have only encouraged individuals who initially had the capacity to own homes to buy large homes or buy additional houses (Porter, 2012). Accordingly, such tax breaks have served to lower government’s revenue while failing to achieve the desired effect of promoting home ownership among the low-income households. Go to conclusion.