The vast majority of Americans’ income taxes are now being swallowed up just to pay interest on the country’s national debt, new numbers show.
Economist E.J. Antoni reports that based on the Fed’s June numbers, interest on the national debt is the equivalent of 76% of all personal income taxes collected by the government.
“Interest on the federal debt was equal to 76% of all personal income taxes collected in Jun – that’s the Treasury’s largest source of revenue and three-quarters of it gets consumed just by interest; does Congress know? Do they even care?”
Antoni says the cost to service the federal debt has exploded 33% in a single year, and set to get worse.
The economist also reports that interest on the national debt was the single biggest expense for the government in June, far outrunning other critical public services, and the Treasury expects it will break the $1.14 trillion level this fiscal year.
“Consider it caught up: interest on the debt surpassed both the Dept. of Health and Human Services and the Social Security Admin. to become the single biggest line item in the Treasury’s monthly statement for Jun – still think this is fine?
Treasury now expects interest on the federal debt to breach $1.14 trillion this fiscal year; if that estimate is anything like their usual overly optimistic projections, then be prepared for it to be much higher.”
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