Half million per household owed to baby boomers–yikes!
Taxpayers owe more than a half-million dollarsper household for financial promises made by government, mostly tocover the cost of retirement benefits for baby boomers, a USA TODAYanalysis shows.Federal, state and local governments have addednearly $10 trillion to taxpayer liabilities in the past two years,bringing the total of government’s unfunded obligations to anunprecedented $57.8 trillion.
That is the equivalent of a $510,678 credit carddebt for every American household. Payments on this delinquent tax billmust start soon if financial promises to the elderly are to be kept.
The cost of retirement programs will start tosoar when baby boomers — 79 million born between 1946 and 1964 — begincollecting Social Security in 2008 and Medicare in 2011.
“This is a monster financial problem that bothparties are going to have to solve,” says Rep. Jim Cooper, D-Tenn., amember of the House Budget Committee. “Most Americans and Congressmembers don’t realize the terrific burden we are putting on futuregenerations.”
USA TODAY compiled a list of all taxpayerliabilities — federal, state and local — to provide a fuller look atthe nation’s financial condition. The numbers are based on officialgovernment reports.
Americans’ government obligations are five timeswhat people owe for mortgages, car loans, credit cards and otherpersonal debt. The $57.8 trillion liability is the amount thatgovernment needs now, stashed away and earning interest, to generateenough cash to pay future obligations. The obligations are valued intoday’s dollars and come due as early as in a few days, when Treasurybills mature, to as long as 75 years for Social Security and Medicare.
Like an unpaid credit card bill, the balance grows every year — about $25,000 per household annually.
Taxpayer liabilities grew 20% in the past two years, 13% above the inflation rate.