Tax Dollars Vanish: 76% of Income Tax Eaten by Ballooning $35 Trillion Debt, Data Shows

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As a seasoned researcher with a background in economics, I find myself deeply concerned by the latest data revealing the alarming growth of interest payments on the United States’ ballooning national debt. Having closely monitored economic trends for years, I have witnessed firsthand the steady increase in this expense and am now alarmed to see it consume an astounding 76% of personal income taxes – a figure that has more than doubled within a year.

The expanding portion of American earnings goes towards covering the escalating interest costs on the nation’s burgeoning debt, with current estimates placing it near $35 trillion according to debt tracking websites.

According to economist E.J. Antoni at Heritage, an astonishing 76% of the personal income tax revenue is being used for debt interest payments now, marking a significant increase of 33% within a year.

In June, the federal debt interest equaled approximately 76% of the total personal income tax revenues collected – which is the primary source of income for the Treasury. This means that around three-quarters of these taxes are used solely to cover the debt interest payments. Is this knowledge well-known among members of Congress? Or do they remain indifferent towards it?

— E.J. Antoni, Ph.D. (@RealEJAntoni) July 11, 2024

As a crypto investor, I can tell you that for every dollar we send to the Internal Revenue Service, approximately 80 cents end up going towards paying off the interest on the United States’ national debt. This is due to the significant increase in the cost of carrying this debt within just one year, which has boosted it by an astonishing third.

As a seasoned financial analyst with years of experience in government budgeting, I can tell you that this fiscal year, the Treasury Department is projected to pay over a trillion dollars just in interest payments. That’s right, a mind-boggling figure that outstrips even the combined expenses for health and human services, as well as Social Security – two categories that have long been the largest expenditures for our government. The sheer magnitude of this number is staggering, and it speaks volumes about the current state of our national debt.

The expense of servicing the federal debt, which is solely the interest payments, experienced a significant increase of 33.0% within a year, and this trend seems to be worsening.

— E.J. Antoni, Ph.D. (@RealEJAntoni) July 11, 2024

As a researcher, I’d like to draw your attention to the cautionary words of Paul Dietrich, the chief investment strategist at B. Riley Wealth Management. He has raised alarming concerns about the current state of the stock market, warning of a potential decline that could outdo the market downturns in the early 2000s and 2008. This ominous forecast makes it one of the most severe warnings Wall Street has witnessed since the last century.

A strategist foresaw that the Federal Reserve might have to maintain elevated interest rates in order to curb inflation, while the government may be compelled to increase taxes to tackle its budget deficit. Should economic growth stall as well, these circumstances could collectively bring about a recession.

In contrast to the average recession causing a approximately 36% decrease for the S&P 500, Dietrich predicted a more severe downturn with potential losses up to 48%, bringing the index down to approximately 2,800 points – a level last seen during the initial stages of the Covid-19 pandemic.

Robert Kiyosaki, renowned author of the “Rich Dad Poor Dad” financial literature, has proposed that the value of Bitcoin, alongside gold and silver, is likely to increase should Donald Trump secure a second presidency.

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2024-07-25 07:59