IN BRIEF

Government Grossly Understates Deficit

MAY 24, 2012

“The typical American household would have paid nearly all of its income in taxes last year to balance the budget if the government used standard accounting rules to compute the deficit, a USA TODAY analysis finds. Under those accounting practices, the government ran red ink last year equal to $42,054 per household—nearly four times the official number reported under unique rules set by Congress…. The big difference between the official deficit and standard accounting: Congress exempts itself from including the cost of promised retirement benefits.” (USA Today)

“It’s a good thing we don’t get all the government we pay for.” –Will Rogers

FEE Timely Classic
“Political Accounting” by James Bovard