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Generational Accounting

Generational Accounting Definition

Generational Accounting refers to an accounting method that measures redistribution of tax burdens across generations. It considers projected lifetime taxes per capita net of transfers, analyzes how government spending that benefits current members of society will affect tax obligations of future generations.


Additional meaning of Generational Accounting:

The aim of Generational Accounting is to maintain the sustainability of a fiscal policy through eliminating policies that negatively impact future generations.


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