Truth in Accounting (TIA) welcomes the bipartisan introduction of the Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act by Senators Cassidy, Durbin, Tillis, Kaine, and colleagues. As the Social Security Trust Fund faces depletion in 2032—with an automatic 22% benefit cut looming without action—this legislation creates a much-needed procedural framework to force congressional debate and a vote on long-term solvency.
However, any meaningful solution must go beyond process. True solvency requires full accrual accounting that honestly reflects the enormous scale of Social Security’s unfunded promises.
According to Truth in Accounting’s analysis of the most recent audited Financial Report of the U.S. Government, the federal government excludes the vast majority of Social Security liabilities from official debt figures, more than $51.6 trillion in promised but unfunded benefits (with updated figures exceeding $54 trillion in recent analyses). Official balance sheets recognize only a tiny fraction because, under current rules, benefits beyond next month’s checks are not considered binding obligations.
This accounting treatment perpetuates dangerous myths:
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Social Security is a self-funded “trust” where workers’ contributions are saved for their own retirement.
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The program does not significantly contribute to our national debt.
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That reported deficits and the trust fund balance accurately portray fiscal reality.
In truth, Social Security operates largely as a pay-as-you-go system. Surpluses have long been invested in intragovernmental IOUs, adding to the federal debt when redeemed. TIA’s Financial State of the Union reports show the government’s true debt burden exceeds $170 trillion, more than four times the commonly reported figure, translating to over $1 million per federal taxpayer. Social Security and Medicare promises are the largest drivers of this gap.
As the Social Security Advisory Board develops its base bill and Congress holds hearings, TIA urges the following:
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Adopt full accrual (FACT) accounting principles that recognize liabilities when benefits are earned and promised, consistent with best practices used in the private sector and advocated by TIA for state and local governments.
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Require transparent reporting of the full economic cost of Social Security promises, including per-taxpayer burden and intergenerational impacts.
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Incorporate rigorous, independent analysis, such as sensitivity testing for discount rates, demographics, and investment returns, rather than optimistic assumptions.
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Ensure any solvency plan confronts reality: Americans deserve honesty about what has been promised versus what can sustainably be delivered.
The PROMISE Act offers a rare opportunity for transparent, bipartisan action. However, without full accrual accounting at its foundation, it risks delivering another short-term patch instead of lasting reform. Truth in Accounting stands ready to provide data, modeling, and analysis to support a fiscally responsible outcome that honors commitments to current beneficiaries while protecting future generations of taxpayers.