FROM THE OFFICE OF PUBLIC AFFAIRS

    
The Department of the Treasury’s FY 2005 budget reflects the President’s commitment to strengthening the economy, fighting the financial war on terrorism and ensuring compliance with the tax laws.

The overall proposed budget for Treasury is $11.680 billion, a 4.5 percent increase over the current FY 2004 level appropriated, providing for the Department to continue in its vital role as the federal government’s economic policymaker, financial manager and revenue collector.

Among the Department’s key priorities are making the tax cuts permanent, improving tax compliance while ensuring that we maintain a fair tax system, using new technology to modernize the tax system, fighting the financial war on terror and safeguarding the government’s finances, as well as the nation’s financial systems and currency.

Making the Tax Cuts Permanent. The President’s three tax relief measures have resulted in significant reduction in tax burdens for millions of American families and businesses. By making this relief permanent we will reduce uncertainty and continue to stimulate economic growth and job creation, benefiting millions of Americans.

Ensuring the Tax System is Fair - Maintaining World Class Service and Compliance with Tax Laws. A series of legislative proposals included in the budget are designed to close loopholes, halt several abusive tax avoidance transactions, and simplify the tax code. The budget reflects the Administration’s continuing commitment to ensuring that all taxpayers pay their fair share of taxes, while reducing the needless cost borne by those attempting to comply. In addition, the budget provides for increases to the IRS’ budget to enhance compliance.

Modernizing the Nation's Tax Systems through Technology Investments. The budget provides for the IRS to continue its efforts to replace current business systems and technology, which will allow for greater management focus and capacity on critical projects and initiatives as well as improvements to management and business processes.
 
Fighting the Financial War on Terror. As a vital part of the government’s war on terror, Treasury offices work to disrupt and dismantle the financial infrastructure of terrorists, drug traffickers and other criminals and execute the nation’s financial sanctions policies. The importance of these efforts is reflected in a 12.7 percent increase for the Financial Crimes Enforcement Network (FinCEN) and a 3.6 percent increase for Treasury’s Office of Foreign Assets Control (OFAC) to strengthen our hand in the financial war on terror and other efforts against financial crime. The work of these agencies includes a concerted effort to safeguard financial systems through the longer term establishment of effective anti-money laundering strategies and programs.

Safeguarding the Government’s Finances and our Nation’s Financial Systems. The budget continues support for critical Treasury objectives such as increasing the reliability of the U.S. financial system, managing the federal debt effectively and efficiently, ensuring accurate and on-time payments and collections, effectively administering the government’s financial systems and increasing economic security.

These are merely a few of the important priorities included in the President’s budget for the Treasury Department. In delivering on these and other commitments, Treasury continues in its dedication to the President’s Management Agenda and the Department’s performance budgeting processes to align funding with performance and results.