This poster is now on moderated status! [Forum] purpose can become swamped by one or more, of the over 700 who are registered to post, 'flooding' the forum with multiple daily 'cut&paste' imports of the entire text of formal articles published elsewhere.
Please use the forum to publish YOUR on-topic composition; in which can be included appropriate selected EXCERPTS with reference link (URL) to 'more' content. MoreAt http://groups.yahoo.com/group/Libertarian/message/55938 -Terry Liberty Parker Owner/moderator, http://groups.yahoo.com/group/Libertarian --- In [email protected], "David B. Schlosser" <[EMAIL PROTECTED]> wrote: > > Rules 'hiding' trillions in debt > Liability $516,348 per U.S. household > By Dennis Cauchon > USA TODAY â" 29 May 2007 - Page 1A > http://www.usatoday.com/printedition/news/20070529/1a_lede29.art.htm > > The federal government recorded a $1.3 trillion loss last year â" far > more than the official $248 billion deficit â" 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 â" equal to $11,434 per household â" 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. >
