Wall Street Mav|Sep 15, 2026 17:50
The US govt is currently paying an average of 3.49% on the total of $40.2 trillion.
In 2026, interest payments will cost $1.3 trillion. 2027 will be about $1.4 trillion.
As older and cheaper rate debt matures, it gets refinanced at higher rates. 12 months from now will likely be $42.5 trillion. As the average rate on the debt inches up to 4%, the interest payments on the debt will cost $1.7 trillion per year.
You can see where this is headed. Interest payment on the US national debt are swallowing the budget. The US govt only collects about $3.1 trillion per year in corporate and individual income taxes. Most of the rest of the budget is FICA taxes, which goes directly to social security and Medicare.
So the $3.1 trillion in incomes taxes collected ... and $1.7 trillion will be gone already with interest payments on the US national debt ... before anything else is paid for.
See the problem?
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