Honesty in Budgeting Act of 2005

The Honesty in Budgeting Act of 2005 proposed a change in how the federal government reports the national deficit and surplus by separating Social Security and Medicare funds from the general budget. Under this bill, the income and expenses from the Social Security and Hospital Insurance trust funds would be excluded from official budget totals presented by the President and Congress.

For citizens, this change was intended to provide a more transparent view of the federal government's actual spending and debt levels without the "masking" effect of payroll tax surpluses. By requiring officials to use "on-budget" numbers in public statements, the bill aimed to ensure that the public received a clearer picture of the financial health of both the general treasury and the specific trust funds dedicated to retirees and healthcare.