Under Biden, federal debt interest surged from 20% to nearly half tax income! Fiscal reform is no longer optional; it is a necessity.

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Visualizing the Impact

Year	Net Interest Payments ($ Trillion)	Federal Revenue ($ Trillion)	Net Interest as % of Revenue
2023	0.9	3.0	30%
2024	1.2	2.55	47%

Net interest on the federal debt has skyrocketed to $1.2 trillion in 2024, consuming 47% of all federal revenue. This astonishing figure underscores the mounting strain of debt servicing on the federal budget, leaving nearly half of every tax dollar earmarked for interest payments alone.

To put this in perspective, for every dollar the federal government collects, 47 cents are immediately allocated to pay off interest. This marks a dramatic escalation compared to previous years, fueled by deficit spending and rising interest rates. The government’s total revenue for the year, approximately $2.55 trillion, highlights the unsustainable nature of this financial trajectory.

Interest payments are no longer a manageable line item; they now rival major budgetary categories like Social Security and defense spending. In fact, this year marks the first time that interest on the debt is projected to surpass U.S. military expenditures. Economists warn that such trends could lead to long-term economic instability if not promptly addressed.

The underlying drivers of this crisis are clear. Pandemic-era borrowing spiked the national debt, while Federal Reserve rate hikes made servicing this debt more expensive. The result? Interest payments accounted for 2.4% of GDP in 2023, with projections to reach nearly 4% in the next decade.

Fiscal reform is no longer optional; it is a necessity. Without decisive action to curb deficit spending and manage the debt, the federal government’s ability to invest in infrastructure, healthcare, and education will dwindle further. America’s financial foundation is at risk.

Under the Biden regime – net interest on the federal debt has gone from consuming 20% to just under HALF of all income taxes for the first month of each fiscal year! pic.twitter.com/wuAhZ5b7yG

— Richard A. Stern (@RichAStern) December 3, 2024