Truth in Accounting Act of 2006

H.R. 5129, the Truth in Accounting Act of 2006, would require the Secretary of the Treasury to change how the federal government reports its financial health. Under this bill, the government’s annual audited financial statement would have to include the "net present value" of all long-term liabilities and commitments, such as future Social Security and Medicare obligations.

For the average citizen, this measure is designed to provide a more comprehensive picture of the national debt by including promised future spending alongside current deficits. By accounting for these long-term financial obligations today, the bill aims to increase transparency regarding the total economic burden facing current and future taxpayers.