New data shows that the vast majority of Americans' income taxes now go solely to paying interest on the country's national debt.
Economist E. J. Anthony reports that interest on the national debt is equivalent to 76% of all income taxes collected by the government, according to Federal Reserve data from June.
“Interest on the federal debt accounted for 76% of all income taxes collected in June—it is the Treasury's largest source of revenue, and three-quarters of it is consumed by interest alone; Does Congress know about this? Do they even care about this?”
Anthony says the cost of servicing the federal debt has risen 33% in one year and will continue to rise.
The economist also reports that interest on the national debt was the government's biggest spending item in June, far outpacing spending on other critical government services, and the Treasury expects it to top $1.14 trillion this fiscal year.
“Consider it all caught up: Interest on the debt has surpassed both the Department of Health and Human Services and the Social Security Administration, becoming the largest item in the Treasury's monthly report for June. Do you still think this is normal?
The Treasury expects interest on the federal debt to exceed $1.14 trillion this fiscal year. If this estimate is in line with their usual overly optimistic forecasts, then be prepared for it to be much higher."
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