USA Liability $516,348 per U.S. household
USA Today Jun 17, 2007
Rules 'hiding' trillions in debt
Liability $516,348 per U.S. household
By Dennis Cauchon
The federal government recorded a $1.3 trillion loss last year — far more than the official $248 billion deficit — when corporate-style accounting standards are used, a USA TODAY analysis shows.
The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss — equal to $11,434 per household — is more than Americans paid in income taxes in 2006.
"We're on an unsustainable path and doing a great disservice to future generations," says Chris Chocola, a former Republican member of Congress from Indiana and corporate chief executive who is pushing for more accurate federal accounting.
Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.
The federal government does not follow the rule, so promises for Social Security and Medicare don't show up when the government reports its financial condition.
Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.
Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.
This hidden debt is the amount taxpayers would have to pay immediately to cover government's financial obligations. Like a mortgage, it will cost more to repay the debt over time. Every U.S. household would have to pay about $31,000 a year to do so in 75 years.
The Financial Accounting Standards Advisory Board, which sets federal accounting standards, is considering requiring the government to adopt accounting rules similar to those for corporations. The change would move Social Security and Medicare onto the government's income statement and balance sheet, instead of keeping them separate.
The White House and the Congressional Budget Office oppose the change, arguing that the programs are not true liabilities because government can cancel or cut them.
Chad Stone, chief economist at the liberal Center on Budget and Policy Priorities, says it can be misleading to focus on the government's unfunded liabilities because Medicare's financial problems overwhelm the analysis.
"There is a shortfall in Medicare and Medicaid that is potentially explosive, but that is related to overall trends in health care spending," he says.
The cost per U.S. household of unfunded promises made by federal, state and local government:
Social Security $144,251
Federal debt $43,380
Military benefits $25,863
State and local debt $17,537
Federal civil- servant benefits $14,374
State and local retiree benefits $13,114
Other federal obligations $2,548
Source: USA TODAY research; numbers rounded
EUROPE'S FINEST TOPLESS HONEYS
Ava Fiore is a Playboy model and 2002 Golden Gloves champion boxer. She was arrested on Wednesday night on I 80 east in Kimball, Nebraska. P...
Wow Paulina still very perky at 44 ! Read about Paulas interesting childhood escaping the iron curtain THE NILES LESH PROJECT - ALL...
Eating fresh watermelon could help men pep up their love lives, scientists said yesterday. The fruit has a similar effect to taking Viagra, ...
Where: Lekeitio, in the Basque region of Spain. What: Antzar Eguna or "Goose Day" has its roots in at least 350 years of Spanish i...
OSBORN COX? - NOW THAT IS A GREAT NAME !!!
Yes ALL of these women are over 50 years old, sure some of them have had some work, but I mean come on a few are grand mothers (GMILFS)!, a...
Larry Flynt, the wheelchair bound self-proclaimed "smut peddler" and "1st Amendment Crusader" has published photos of Na...
Missed it ? - The Archives !
- ► 2010 (80)
- ► 2009 (319)
- ► 2008 (1240)
- MAN CARVES MT RUSHMORE OF CHEESE ???
- BABY SEALS ARE LIKE PUPPYDOG MERMAIDS !
- WHAT IS THE ZORSE ???
- SMART PANDA ESCAPES FROM ZOO ! ! !
- PARIS HILTON LIES ABOUT DRUG USE ???
- THE "SPICE GIRLS" ARE BACK ON TOUR
- SECURITY CAM - DOUBLE KNOCK OUT PUB ! ! !
- JAPANESE TV - DENTISTRY IN A RALLY CAR ! ! !
- THE PUG vs THE PEACOCK ! ! !
- JAPANESE TV - WORLDS FASTEST CHUGGER !!!
- JAPANESE TV - THE TRICKY PITCHER ! ! !
- WILL FARRELL & PEARL "GOOD COP, BABY COP"
- THE ULTIMATE HOWARD STERN IMPERSONATOR !!!
- STARWARS CONSPIRACY "DEATHSTAR EXPLOSION"
- BUSTED, BUSTED AGAIN & AGAIN & AGAIN !!!
- tHE BEAUTY OF A 16 YEAR OLD PRINCESS !!!
- WHEN A FACIAL TATOO IS A BAD IDEA
- JESSICA BIEL - THE HOTTEST JESSICA ???
- LINDSAY LOHAN - REHAB PARTY PICTURES !!!
- GEORGE W BUSH HISTORICAL POLL SLIDE ???
- NEW JERSEY HOME OF WORLDS UGLIEST DOG !!!
- JESSICA BIEL SEXY BIKINI PHOTOS FROM "GQ"
- $ 206 MILLION IN SIEZED DRUG MONEY ! ! !
- HOW MUCH DO YOU OWE ???
- WORLD'S MOST EXCITED SOCCER ANOUNCER !
- JAPANESE TV - REPORTER FALLS 5 STORIES !!!
- MS "SURFACE" BETTER THAN THE IPHONE ???
- SKY DIVING FROM OUTER SPACE ! ! ! ! !
- THE RISE & FALL OF MUSTARD FACE ! ! !
- HOW CANADA IS FIGHTING TERRORISM ???
- DAVID BLAINE'S STREET MAGIC ! ! !
- BOB BARKERS NEW GIG ON SPORTS CENTER !!!
- cCLOSE CALL WITH A ROLLERCOASTER ! ! !
- AMAZING CLOSE CALLS ! ! !
- HILLARY "SOPRANOS SPOOF" CAMPAIGN AD ?
- HOTEL LOBBY MELTDOWN ! ! !
- THE ORGAS- ALARM ???
- NEW "REALITY BASED" DATING SHOW !!!
- COOKING WITH THE MENTALLY CHALLENGED !!!
- RON PAUL TALKS WITH MSNBC ! ! !
- MEN ARE PIGS ! ! ! CONDOM AD ???
- THE BRILLIANCE OF BOB BARKER ! ! !
- RON PAUL SLAMS FAT GUY ON GOVERNMENT
- THIS IS CALLED PILOT ERROR ! ! !
- JAPANESE TV - THE ARCHERY CHANNEL ! ! !
- NEW SHOW - "INTERVENTION GIRL" ! ! !
- 81 PERSON SKYDIVE FORMATION ! ! !
- BATMAN'S NEW "DARK KNIGHT" SUIT !!!
- CHRISS ANGEL GETS STEAMROLLED ! ! !
- I AM LEGEND - TEASER ! ! !
- TOMMY CHONG ON PARIS HILTON ???
- GOOD ADVICE FROM BOB NEWHART !!!
- AFI 100 GREATEST MOVIE QUOTES ! ! !
- THE MEDIA REVOLUTION ! ! !
- AWESOME 6 YEAR OLD SINGER ! ! !
- WORLD'S LONGEST HANDSHAKE ! ! !
- RON PAUL ON THE COLBERT SHOW 6-13-2007
- JAPANESE TV - EXTREME TREADMILLING ! ! !
- TRIUMPH "THE INSULT DOG" AT THE TONYS ! ! !
- PERVERTED JUSTICE ???
- CAMELS-THE CIGARETTE DOCTORS SMOKE !
- THE LEGENDARY CHRIS FARLEY TRIBUTE ! ! !
- AMAZING HUMAN BASKETBALL ! ! !
- JESSICA ALBA "BIKINI BOTTOM" ISSUES ! ! !
- SNATCHING DEFEAT FROM THE JAWS OF VICTORY ! ! !
- VIDEO KILLED THE RADIO STAR "LIVE COVER"
- BUSH HAS WATCH JACKED BY ALBANIAN ! ! !
- WORLDS FASTEST TALKING WOMEN ! ! !
- AUTOMATED PHONE SEX ???
- CAMERON DIAZ SEXY BURP ???
- MARIAH CAREY - STILL HOT ???
- THE "GAY" BOMB ???
- TOPLESS CELEBRITY BEACH PARTY ! ! !
- LINDSAY LOHAN BEACH BIKINI PICS ! ! !
- I AM LEGEND - TRAILER ! ! !
- 30 DAYS OF NIGHT - TRAILER ! ! !
- SASHA BARON COHEN & WILL FARRELL KISSING!
- CHRISS ANGEL LEVITATES ABOVE THE LUXOR ! ! !
- TESTICLE FESTIVAL 2007 ! ! !
- MEN NEED SPACE IN THE MENS ROOM ! ! !
- JAPANESE TV - HUMAN TETRIS ! ! !
- PARIS HILTONS LAST FAN UPSET AT SENTENCE ! ! !
- KIM KARDASIAN HAS A BIG @SS ! ! !
- EVA LONGORIA IN HOT PHOTO SHOOT ! ! !
- BUDLIGHT "SWEARING" COMMERCIAL ! ! !
- DOESN'T SHE HAVE PRETTY NIPPLES ???
- ROLLERCOASTER FREAK OUT ! ! !
- THE BIGGEST GEEK EVER PUNKS CNN REPORTER !!!
- BABY PORCUPINES NEED LOVE TOO ! ! !
- CIRCULAR PROCESSED VIDEO "TRAIN RIDE"
- POWER THIRST WILL MAKE YOU POWERFUL !!!
- THE "TWO STEVES" REVIEW THE IRAQ WAR ! ! !
- ROLLING ROCK "FOUL BALL TO GROIN" COMMERCIAL
- ARE YOU A "RALLY CAR " RACER ???
- LINDSAY LOHAN PARTY PIX ! ! !
- NOW ITS OKAY TO SAY F*CK & SH*T ON TV ???
- TRANSFORMERS "OPTIMUS PRIME vs BONECRUSHER"
- JESSICA ALBA BIKINI WEDGIE ISSUES ???
- BRITNEY SPEARS - STILL WORKIN THE THONG ?
- SARAH SILVERMAN PUNKS PARIS HILTON "LIVE" !
- ▼ June (113)