Generational Accounting
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Generational accounting is a method of national accounting for measuring redistribution of lifetime tax burdens across generations from social insurance, including social security and social health insurance.Generational accounting goes beyond conventional government budget measures, such the national debt and budget deficits, by accounting for projected lifetime taxes per capita net of transfers, which may not be reflected in a pay-as-you-go system of social-insurance accounting. The latter includes only current taxes for retirees less current outlays. Uses include projecting future taxes and...
Generational accounting is a method of national accounting for measuring redistribution of lifetime tax burdens across generations from social insurance, including social security and social health insurance.Generational accounting goes beyond conventional government budget measures, such the national debt and budget deficits, by accounting for projected lifetime taxes per capita net of transfers, which may not be reflected in a pay-as-you-go system of social-insurance accounting. The latter includes only current taxes for retirees less current outlays. Uses include projecting future taxes and outlays from different prospective current policies. For example, if a fall in labor-force growth from an earlier fall in the birth rate is projected to increase the proportion of retirees to the labor force, generational accounting might examine different projected changes in taxes or program benefits to finance the change.
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