When it comes to the money the government is siphoning off you through income taxes, most of it is literally going up in smoke.
The most recent Treasury data showed that as the federal government surpasses a record $35 trillion national debt, $1.1 trillion will be spent on interest payments alone this fiscal year.
According to reports: “Interest payments on the federal debt now account for 76% of all personal income taxes collected. This means that for every dollar Americans pay in income tax, about 76 cents go towards paying interest on the national debt.“
Roughly 45%, or nearly half of the federal government’s revenue is from personal income taxes.
The “76%” statistic is from the latest data from June, which showed that the U.S. government spent $140 billion on interest for Treasury debt securities and collected $185 billion in individual income taxes the same month.
At the turn of 21st century, the national government debt was $5.77 trillion, and by 2010 it had more than doubled to $12.77 trillion. The debt reached $23.22 trillion at the beginning of 2020. And only a few years later on Biden’s watch, it now surpasses $35 trillion.
At this rate, we’ll eventually reach a point where we don’t even bring in enough income tax to cover the interest payments on the debt – also known as bankruptcy.
In the last fiscal year of the Trump presidency, annual interest on the debt were at $521 billion, which was $44 billion (15%) higher than the $454 billion the government was spending the year before he took office. By contrast the government’s annual interest expense under Biden increased by a whopping $619 billion from what he inherited, a 114% increase.
Phrased differently: Biden screwed up America’s finances so badly that the federal government’s annual interest expense under Trump was closer to zero than it is to Biden’s.
