76% of income from personal income tax went to interest on the debt in June | louder.news

The overwhelming part of the taxes you pay as personal income tax now goes to nothing.

The most recent Treasury data showed that as the federal government approaches a $35 trillion national debt, $1.14 trillion is expected to be spent on interest payments alone this fiscal year .

In accordance with Blockname:

Interest payments on the federal debt now account for 76% of all personal income taxes collected. That means that for every dollar Americans pay in income taxes, about 76 cents go toward paying interest on the national debt.

For reference, about 45%or nearly half of the federal government's revenue comes from personal income tax.

The “76%” statistic corresponds to recent data from June, which showed that the US government spends $140 billion in interest on Treasury billsif it collected $185 billion in individual income taxes in the same month.

The rapid growth of the national debt alarms many observers. At the beginning of 2000, the US federal government debt was $5.77 trillion. By 2010, it had more than doubled to $12.77 trillion. The debt reached $23.22 trillion at the beginning of 2020. Now, just a few years later, it has risen to nearly $35 trillion.

In the final fiscal year of Trump's presidency, annual interest on the debt was $521 billion, $44 billion (15%) higher than the $454 billion the government spent the year before he took office possession of the position. By contrast, annual government interest spending under Biden increased by $619 billion from what he inherited, a 114 percent increase.

In other words, Biden messed up the nation's finances so badly that the federal government's annual interest expense under Trump was closer to zero than it was under Biden.