Interest on National Debt Approaches 100% of Personal Income Taxes

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As the U.S. government collects approximately $2.5 trillion annually in personal income taxes, a staggering 40% of that sum, equivalent to $1 trillion, is already allocated to servicing the interest on the national debt. The ominous trajectory continues as interest payments swell due to the maturation of older, low-interest debt being refinanced at higher rates, compounded by the accrual of new debt each year. If this trend persists, a looming fiscal crisis appears imminent, with projections indicating that within a few years, the entirety of personal income taxes could be swallowed by the voracious appetite of the national debt’s interest.

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