Federal Debt Equates To About $ 287,859 Per Household Taxpayer, By Terence P. Jeffrey
As Congress struggled in recent days to raise the legal limit on federal debt, the Treasury kept that artificially frozen debt at around $ 28.9 trillion, where it stood at the start of this week.
With this limit lifted, the federal debt will surge upward and then continue to climb steadily, steadily increasing the burden on future taxpayers.
In 2018, according to the latest comprehensive annual report on personal income tax returns released by the Internal Revenue Service, 100,424,240 households in the United States filed what the IRS calls a “taxable return.” âThe taxable and non-taxable classification of a return for this report is determined by the presence of ‘total income tax’,â the IRS explained.
âTotal income tax,â he said, âwas the sum of income tax after creditsâ.
In other words, the 100,424,240 households that filed a âtax returnâ in 2018 actually paid income taxes to the federal government.
If you divide the $ 28,908,004,857,445 in debt the federal government owed before the debt ceiling was lifted by the 100,424,240 U.S. households that paid net income taxes in 2018, that equates to roughly $ 287,859 per taxpayer household.
In 1989, the year President Ronald Reagan left office, there were 89,178,355 taxpayer households in the United States, according to the IRS. At the end of January of the same year, the federal debt stood at $ 2,697,957,000,000.
This means that the federal debt was then about $ 30,253 per household subject to income tax.
Even when the January 1989 federal debt of $ 30,253 per taxpayer household is adjusted to November 2021 dollars (using the Bureau of Labor Statistics inflation calculator), it only amounts to about $ 69,437. .
In real terms, the current federal debt of $ 287,859 per taxpayer household is more than four times greater.
How much more will the debt burden be when your grandchildren pay income taxes?
President Joe Biden’s budget proposal for fiscal year 2022 projected a cumulative deficit of $ 14.531 billion over the next 10 fiscal years alone. Balancing the budget – let alone slowing the increase in debt – plays no role in his budget plan.
Adding an additional $ 14,531 billion to the federal debt would increase the burden on the 100,424,240 2018 taxpaying households by approximately $ 144,696.
What could taxpaying households in this country buy for the $ 287,859 in debt the federal government already holds on their behalf?
In Iowa, according to Zillow, the average cost of an “average price” home in October of this year was $ 174,916. In Ohio it was $ 190,984. In Nebraska, it was $ 217,232. In Michigan, it was $ 218,051. In Wisconsin, it was $ 241,369. In Illinois it was $ 243,355. In Pennsylvania, it was $ 245,153. In Tennessee, it was $ 253,263. In South Carolina, it was $ 247,606. And, in Georgia, it was $ 269,441.
Clearly, in many parts of the United States, the mortgage a taxpayer family would need to purchase a home would be less than the amount the federal government borrowed on their behalf.
Which would you prefer to have over your head? A roof that you will own one day? Or a federal government that steadily increases its control over your finances and your life?
The federal government obviously has not borrowed money from mortgage providers to buy homes.
Among those who lend money to the federal government so that it can continue to manage its huge annual deficits are foreign governments and foreign interests. According to the Treasury Department, Japanese entities held $ 1.299 trillion in U.S. public debt at the end of September. Entities in mainland China held $ 1,047 trillion. Entities in the UK owned $ 566.5 billion; Luxembourg entities owned $ 311.8 billion; Irish entities owned $ 309.6 billion; and the entities in Switzerland own $ 296.5 billion.
Even though the average interest rate on US public debt listed on the stock exchange has been very low in recent years (1.437% in November 2021 compared to 5.395% in November 2001), the real interest the government is currently paying is still high. In fiscal year 2021, according to the monthly treasury statement, interest payments on treasury securities reached $ 562.38 billion. This was more than three times the cost for fiscal year 2021 of the State Department ($ 35.814 billion), the Department of Justice ($ 39.261 billion) and the Department of Homeland Security ($ 91.069 billion) combined ($ 166.144 billion).
Will the federal government balance its budget again?
The obvious bet is: No.
Terence P. Jeffrey is the editor of CNSnews.com. To learn more about him, visit the Creators Syndicate webpage at www.creators.com.
Photo credit: QuinceCreative to Pixabay