The annual deficit would be 1.3 trillion. The national debt would be 59.1 trillion. http://www.brewedfreshdaily.com/2007/05/29/the-real-deficit-the-scandal-of-government-accounting/ According to USAToday: Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later. The federal government does not follow the rule, so promises for Social Security and Medicare donât show up when the government reports its financial condition. This means that, to get votes, politicians can make promises today that will be paid for tomorrow, without putting aside the reserves to ensure that the government will be able to honor the commitments they make. Or, as Wimpie used to say in the Popeye cartoon, âIâll gladly pay you Tuesday for a hamburger today.â Inevitably, these promises become obligations of future generations of taxpayers. Reports USAToday: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined. Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.