(NaturalNews) The federal government declared a $318 billion budget deficit last year, but in reality it was over $3 trillion, according to government accountants.
"We've been hiding the bottom line from the American people," says Rep. Jim Cooper, D-Tenn., "It's not fair to them, and it's delusional on our part."
Congress uses "cash accounting" -- an accounting practice that would be illegal for any U.S. corporation -- in order to report a lower deficit publicly. This method is comparable to a checking account balance which shows the daily balance, but excludes payments to be debited such as bills. Similarly, Congress has not been accounting for outflow to programs such as Medicare and Social Security. Without these omissions, the U.S. budget deficit is well over $3 trillion.
Some Congress members are lobbying for change, arguing more accurate numbers are needed when making budget decisions and that honest accounting would encourage second thoughts before approving popular spending bills.
Though the House advocated a proposal to include long-term expenses in publicly announced budgets, the bill died when Senate and House members could not agree on the numbers.
Supporters of open accounting practices on Capitol Hill say it is time for Congress to be straightforward about accounting procedures, particularly when the viability of Medicare, Social Security and government pensions are being called into question.
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About the author: Mike Adams is a natural health author and award-winning journalist with a mission to teach personal and planetary health to the public He has authored and published thousands of articles, interviews, consumers guides, and books on topics like health and the environment, impacting the lives of millions of readers around the world who are experiencing phenomenal health benefits from reading his articles. Adams is an independent journalist with strong ethics who does not get paid to write articles about any product or company. In mid 2010, Adams produced NaturalNews.TV, a natural health video sharing website offering user-generated videos on nutrition, green living, fitness and more. He also founded an environmentally-friendly online retailer called BetterLifeGoods.com that uses retail profits to help support consumer advocacy programs. He's also a successful software entrepreneur, having founded a well known email marketing software company whose technology currently powers the NaturalNews email newsletters. Adams also serves as the executive director of the Consumer Wellness Center, a non-profit consumer protection group, and regularly pursues cycling, nature photography, Capoeira and Pilates. Known by his callsign, the 'Health Ranger,' Adams posts his missions statements, health statistics and health photos at www.HealthRanger.org
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Friday, August 04, 2006
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