Real Budget Deficit $5 Trillion, USA Today Study Finds

Thursday, 24 May 2012 11:21 AM

By Jim Meyers

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
According to the U.S. Congress, the federal government’s budget deficit last year was $1.3 trillion. According to a USA Today analysis, the true figure is an astronomical $5 trillion.

The reason: Congress exempts itself from including the cost of promised retirement benefits when computing the deficit, unlike companies which must include these commitments in financial statements.

Liabilities for Social Security, Medicare and other retirement programs rose by $3.7 trillion in 2011, but the amount was not included on the government’s books, the analysis found.

If the retirement commitments were included, the deficit would be equal to $42,054 per household. Since the median income of U.S. households is $49,445 according to the Census, the typical household would have paid nearly all of its income in taxes to balance the budget last year if standard accounting rules were used to compute the deficit.

“By law, the federal government can’t tell the truth,” accountant Sheila Weinberg of the Institute for Truth in Accounting told USA Today.
If future commitments are taken into consideration, the deficits from 2004 to 2011 would be six times the official total of $5.6 trillion.

The analysis also determined that federal debt and retiree commitments equal $561,254 per household, while the average household owes $116,057 for mortgages, car loans and other debts.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

GOP: Raise Minimum Wage, Vote for Common Sense

Thursday, 23 Oct 2014 00:18 AM

Democrats in the Senate, and President Obama, have expressed support for raising the federal minimum wage from $7.25 an  . . .

Ed Royce: 'Are We Doing Enough' to Stop Terror Attacks?

Wednesday, 22 Oct 2014 22:40 PM

Rep. Ed Royce said he thinks laws will be changed in Great Britain and Canada to stop the sort of homegrown terrorist at . . .

Ebola Death Toll Rises to Almost 4,900

Wednesday, 22 Oct 2014 22:28 PM

The number of people with Ebola is set to hit 10,000 in West Africa, the World Health Organization said, as the scramble . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved