US National Debt:
US interest payments on National Debt:
Interest on the national debt exceeds annual spending on Medicare, as well as national defense. In fiscal 2024, the government’s net interest expense was $879.9 billion, or 13% of all that year’s expenditures, according to data from the Office of Management and Budget.[1]
US National Debt as present of GDP:
Prediction of US National DEbt:
The US government whom is captured by corporate interests and the wealthy has 2 paths to address the above problem.
Increased taxation. ROFL
Print more dollars. Yep likely methinks. Kick the can down the road.
The upcoming test to see how the US government handles the upcoming bankruptcy of Medicare & Social Security.
3 solutions
A)Increase payroll tax &/or remove income cap.
B)Raise retirement age [currently 67]
C)Implement benefit cut
Option A is out.
12/23/2025
would require workers to pay more than $2,600 a year in extra payroll taxes to keep full benefits flowing. The math behind that idea is straightforward, but the public’s reaction, and Washington’s reluctance to touch it, show how close the program is drifting toward crisis without a clear rescue plan.
Instead of rallying around a solution, Americans are split between expecting cuts, doubting the program will survive, and recoiling when they see the real price tag of saving it. I see a widening gap between what the numbers demand and what voters are willing to accept
Common taxpayers say:Nope!
Removing the income cap removes the link between contributions and benefits. But the extremely wealthy are currently increasing the amount/percentage of wealth & income annually. One could make the argument that it is a fair exchange. I doubt the wealthy will stand for such a change. They are aggrieved that they pay the majority of income taxes and that the working class are freeloaders.
Option B certainly has little support.
Option C. One could make the argument that we are currently on; this option is yearly Social Security increases are just eaten up by Medicare part B premium increases. But this is inadequate to save the existing system. On the present glide path we are looking at a 21% benefit cut.
So new COLA approach-cut COLA on highest beneficiaries.
If inflation in 2035 resulted in a 2 percent COLA and the cap were set at $900, someone receiving a $50,000 benefit per year would normally get a $1,000 increase. Under the cap, that person would instead receive $900. Retirees receiving $45,000 or less in benefits would see no change and would get the same COLA as they do under current law.
The above will be an inadequate fix. But it gets the toe in the door so that it will expanded to include all beneficiaries eventually. Yes even those 22 million that rely entirely upon Social Security. But hey, they never were very productive members of the economy. And the US lifeboat load needs to be lighten.
[1]Key facts about the U.S. national debt | Pew Research Center
