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Government
It's not a tax problem, It's a spending problem
2018-09-14
[CNS] Feds Collect Record Individual Income Taxes Through August; Still Run $898b Deficit.
How much of that is interest on current debt, and how much of that interest payment is higher than in previous years simply due to the interest rate having increased, as President Obama intended? And how much of the remaining is non-discretionary spending over which neither President Trump nor Congress has any say unless Social Security and Medicare payments to our retired citizens are cut?

Posted by:Procopius2k

#2  Thank you, Chuckles Platypus8549. I had no idea about the specifics.
Posted by: trailing wife   2018-09-14 21:32  

#1  The average term of US federal debt is around 70 months. Assuming an average interest rate increase of 1% across those 11 months (which probably overstates the case), a debt of $22T & 11/70 of said debt having been refinanced at the higher rate a decent back-of-the-envelope number would be $35B in additional interest costs attributable to said 1% increase in interest rates. Significant but it's still a spending problem.
Posted by: Chuckles Platypus8549   2018-09-14 14:29  

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