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Institute for Truth |
CORPORATE
| U.S. Corporations | U.S. Federal Government |
| Enron inflated its revenues by $170 million when it reported loan proceeds as income.1 | The Federal government inflated its projected revenues for 2003-2012 by $3.4445 trillion when it recorded money borrowed from trust funds as income. If this money was reported accurately, the $1.015 trillion surplus would convert into a $2.430 trillion deficit.2 |
| Enron avoided booking $125 million in debt.3 | The Federal government avoids booking trillions of dollars in debt. Social Security liabilities of $12.9 trillion and Medicare liabilities of $16.9 trillion are not recorded on the Federal government's books.4 |
| WorldCom Inc. improperly accounted for $3.8 billion in expenses during 2001 and first quarter 2002. They originally reported expenses as capital expenditures.5 | The Federal government improperly accounted for $19 billion each year in payments for fiscal years 2001 and 2000.6 |
| Qwest Communications uncovered $874 million in misstatements of financial results in 2000 and 2001. They recorded income in a lump sum instead of over time.7 | The Federal government uncovered $642 billion in misstatements of financial results for 2001. The $127 billion budget surplus reported for 2001 became an accrual based deficit of $515 billion.8 |
| Enron and WorldCom no longer have any assets in their employee pension plans. Because of their collapse, the value of their investors' stock holding is minimal. | The Federal government has no real economic assets in the Social Security and Medicare trust funds. The actual value of the taxpayers' contributions to these funds is zero.9 |
| Enron, WorldCom and Global Crossing filed for bankruptcy. | The bankruptcy of the Social Security and Medicare trust funds has been predicted by the Board of Trustees of both funds. These unfunded liabilities threaten to produce levels of Federal debt that have been portrayed by CBO as unsustainable.2 |
| 1 Ivanovich, "Senate panel blasts board in Enron fall", Houston Chronicle, July 6, 2002 2 Congressional Budget Office, Budget and Economic Outlook: Fiscal Years 2003-2012, Baseline Projections of Trust Fund Surpluses, August, 2002 3 "Bankers let Enron ignore procedures, records show", Houston Chronicle, July 23, 2002 4. Liu, Liqun, Rettenmaier, Andrew J. and Saving, Thomas R., Meaningful Measures of Fiscal Deficit and Debt: The Case for Incorporating Entitlement Debts, Private Enterprise Research Center, Texas A&M University, May, 2002 5. Noguchi, Yuki and Merle, Renae, "WorldCom Says Its Books Are Off By $3.8 Billion", Washington Post, June 26, 2002 6. General Accounting Office, Consolidated Financial Statements, 2000 and 2001, March 29, 2002 7. Burns, Johnathan, "Qwest Plans Restatement", Dow Jones, July 29, 2002 8. United States Treasury Department, fiscal year 2001 Financial Report of the United States Government 9. Office of Management and Budget, Analytical Perspectives, Fiscal Year 2003 Budget of the United States Government |
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