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The Secretary of the Treasury may hold the most important job in politics. After all, “he who holds the purse strings, rules the house, the nation, the world.” Although the Treasury Secretary does not entirely control the federal budget – he shares that responsibility with Congress and the President of the United States – his many duties include printing money, managing national debt and collecting taxes. To date, every Secretary has been male, but his powers have shifted over time.
Origins
The first Treasury Secretary was Alexander Hamilton. While currently best known for lending his name to the award-winning Broadway play, Hamilton also helped shape the country. He paid off the United States’ debt from the Revolutionary War by issuing bonds and taxing liquor. He also founded the federal mint and the first central bank. His efforts established the office as a strong presence on the national stage and inspired generations after him. Later Secretaries founded paper currency systems, funded wars and expanded the central banking system.
Presidential Adviser
The sitting President chooses his Cabinet members, partially because each Secretary is expected to offer advice to the President. That means the Secretary must be politically savvy but also dedicated to advancing his or her department’s interests. The Treasury Secretary advocates for tax policies and fiscal plans to benefit America’s interests.
Criminal Enforcement
Over the years, the Department of the Treasury amassed a number of law enforcement responsibilities. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was part of the Department. So was the U.S. Customs Service and the U.S. Secret Service. All of these agencies were initially created to protect America’s economic interests. For example, the Secret Service was originally responsible for fighting currency counterfeiting. As of 2003, these agencies were transferred to the Department of Homeland Security.
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Represent U.S. Interests
The Secretary serves on many boards and international banking associations as the official representative of the United States. According to the U. S. Department of the Treasury, a few of these roles include:
- Chairman of the Boards and Managing Trustee of the Social Security and Medicare Trust Funds
- Governor of the International Monetary Fund
- Chairman of the Thrift Depositor Protection Oversight Board
Oversee the Internal Revenue Service (IRS)
An important role of the Treasury Secretary is keeping the country’s budget balanced. Part of this role entails collecting taxes via the IRS. The Secretary monitors the IRS, adjusts its policies and ensures the agency performs properly. Although many taxpayers dislike the IRS and dread interacting with the agency, taxes are necessary for defense spending, public education and many other federal functions. The Treasury Secretary ensures taxes are collected and distributed to the appropriate government agencies. Earlier Secretaries were able to change tax rates, but that power rests with Congress now. The Secretary can still advise Congress or the President to make adjustments to tax policy.
Although the Secretary’s role is constantly changing, one thing remains constant. The Secretary of the Treasury plays a vital part in keeping America fiscally healthy.