Interest on U.S. debt to hit $1.14 trillion, consuming 76% of income taxes this year.

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According to a recent report, interest payments on the U.S. national debt are projected to reach $1.14 trillion this year, which would consume approximately 76% of all personal income taxes collected. This significant increase in interest payments is attributed to rising interest rates and the growing national debt.

In June 2024, interest payments on the debt surpassed both the Department of Health and Human Services and the Social Security Administration, making it the largest line item in the Treasury’s monthly statement. This is a concerning trend as it indicates that a substantial portion of federal revenue is being used to service debt rather than fund essential programs and services.

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