Heritage Foundation public finance economist E.J. Antoni says consumers are increasingly relying on debt and dipping into savings as spending rises on 'Making Money.'
Interest on the federal debt is now so immense that it’s consuming 40% of all personal income taxes. The largest source of revenue for the federal government is increasingly being devoted to just servicing the debt, not even paying it down.
The problem is getting worse daily and will eventually result in even more pain for taxpayers.
The recent monthly Treasury statement from the Fiscal Service showed that the Treasury Department paid $88.9 billion in October on interest for the federal debt. That’s almost double what it paid in October of the previous year. Worse, the Treasury is projecting interest payments for the fiscal year to exceed $1 trillion. Every month that goes by, the Treasury increases that forecast as the outlook worsens.
Interest on the federal debt is now so immense that it’s consuming 40% of all personal income taxes. (iStock) (iStock)
The $88.9 billion in interest is larger than all but two line items in the monthly report, and one of those items is only slightly larger than the interest expense. The Department of Health and Human Services cost the Treasury $89.8 billion while the Social Security Administration used $117.6 billion. The cost of servicing the debt exceeded everything else, including military spending.
A WINNING, 3-PART SPENDING CUT STRATEGY FOR REPUBLICANS
For further context, interest payments in October were greater than the expenses for the Departments of Agriculture, Education, Energy, Homeland Security, Justice, State, Transportation and Veterans Affairs, as well as the Environmental Protection Agency and NASA –Read more on foxbusiness.com