Investment Practices and Strategies in the U.S. Treasury
Treasury Tax & Loan (TT&L) notes
This program was established in 1978 to provide Treasury with an effective tax collection mechanism designed to assist in balancing the Treasury General Account (TGA). Through this program the Treasury collaborates with over 9000 commercial financial organizations whose mandate is tax payment collection. Almost ten percent of these institutions also hold funds and pay interest to Treasury. The program is divided into three sections collectors, retainers, and investors. The collectors, which make the majority receive payments from customers and remit the funds to Treasury's account. Retainers unlike the collectors retain specific amount subject to interest and the funds can be called by the Treasury. The investors, collect, retain and receive funds from the treasury through investment channels (United States Government Accountability Office, 2007).
One major advantage of this program is the ability to provide the Treasury...
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