The financial situation of the United States has deteriorated by more than
Chicago, March 02, 2022 (GLOBE NEWSWIRE) — Today, Truth in Accounting (TIA), a think tank that analyzes government financial reporting, released its annual report on the financial state of the Union. This report analyzes the United States Government’s audited financial report for the fiscal year ending September 30, 2021.
This year’s report shows that the financial situation of the US government has deteriorated by more than $10 trillion in 2021. The US needs $133 trillion to pay its bills. The majority of that debt can be traced to $58.1 trillion in Medicare pledges and $45.4 trillion in Social Security. These are promises that were made to our fellow citizens, but the government has not set aside the money to fund them. Other contributing factors include military and civilian pension benefits, government debt and other liabilities.
Unsurprisingly, the COVID-19 pandemic had a negative impact on the federal government’s financial health last year. Like all state and local governments, the federal government has taken on additional costs and had to borrow more money to deal with the pandemic.
In 2021, the US federal government spent $7.4 trillion on health and human services, defense and veterans, social security, interest, education, and other expenses. The federal government received $4.3 trillion in revenue consisting of personal income tax and source deductions, corporate and excise taxes, estates, gift taxes, as well than other income. Five percent of all tax revenue has been used to pay interest on the current debt.
The Financial State of the Union report gives the US government an F rating and calculates a taxpayer burden of $836,000. This means that to pay off the $133 trillion in debt by the end of fiscal year 2021 and have enough money to pay promised benefits, each federal taxpayer would have to pay $836,000.
“The deterioration of the federal fiscal situation is more than alarming,” says Sheila Weinberg, founder and CEO of Truth in Accounting. “As Treasury Secretary Janet Yellen stresses that our current fiscal trajectory is ‘unsustainable,’ we continue to follow it.”
The Financial State of the Union report is an in-depth study of the United States government’s audited financial reports. The data in this report comes from the US Government Financial Report.
Founded in 2002, Truth in Accounting is dedicated to educating and empowering citizens with understandable, reliable, and transparent government financial information. Sheila Weinberg is a Chartered Accountant with over 40 years of experience in the field.