Interest on the Federal Government Debt.
"Net interest payments will climb from $231 billion in 2014, or 1.3 percent of GDP, to $799 billion in 2024, or 3.0 percent of GDP—the highest ratio since 1996." This is more than a 300% increase.
$799 billion - $231 Billion = $568 Billion.
So if we add $1,003 Billion from previous calculations (adding in creased debt in 2024 from Social Security and Medicaid) to $568 Billion we have $1,571 Billion. Is there spare $1,571 Billion sitting around to pay for this extra expense every year starting in 2025? Facts are facts, and increased taxes on the rich and successful will take more and more over time.
If you examine the Year 2018 row (in red):
Combined total of #1 and # 2 is $893 Billion.
By 2026: (last row) (in red) :
Add $1,571 Billion from previous to $534 Billion = $2,105 Billion in additional annual payments that the CBO says are required annually by 2025. That is 9 years from now. That is over 2 Trillion Dollars per year, or $175 Billion every month, or $39 Billion per week.
"the Debt -- and the interest owed on it -- will continue to grow faster than the economy in subsequent decades. That's a trajectory that is unsustainable."
CBO (Congressional Budget Office)
The CBO analyzed the solvency of Social Security from 2015 to 2025.
CBO (Congressional Budget Office) - Deficit Outlook 2015 - 2025
CBO provides Objective Analysis to Aid the US Congress in Economic & Budgetary decisions
The CBO was formed in 1974 and has a Staff of 235
Medicaid costs will increase 83% by 2025 and that will cost an additional $263 Billion annually - look at Blue Arrow. If you add that $263 Billion to Social Security's increase of $740 Billion they total $1,003 Billion annually as of 2025. Is there a discretionary $1,003 Billion annually with a 6% annual increase to pay for these 2 programs?
The 2 Pie Charts above contrasts How Federal Tax dollars are spent in 2012 & 2020 (4 years from now).
Notice that the green colored area drops 67% from 24% to 8%.
Click here to Download a 2 page PDF of the CBO showing annual Deficits and Surpluses from 1965 to 2026.
These CBO projections do not include Interest on the Debt.
Look at the Yellow Arrow above to the right.
From 2015 to 2025:
Look at the Purple Arrow
From 2015 to 2025: OASI (Old Age & Survivors Insurance) goes from + $54 Billion to NEGATIVE $284 Billion which is a NEGATIVE $338 Billion difference and that will increase and is annual.
Annual Deficit Table (column 3) from 2016 to 2026 (According to CBO)
Column 4 is Debt increase in Dollars and Column 5 is as a % compared to the baseline of 2016.
CBO March 2016 Medicare Baseline
Proof US Government will have 67% fewer Tax Dollars in 4 Years to Run Operations and Programs
The reason for slashing 67% of the US govt is a result of the explosive growth of the 4 costs in the Red area which are:
In 2012, these 4 expenses cost 76% of every tax dollar taken in and in 2020 that increases to 92%.
Below are tables showing the CBO's projected increases in spending for Medicare, Medicaid, Interest on the Debt and Social Security. You will see that combined these 4 will require and additional $2,000 Billion in additional spending. Problem is there is no way the USA can pay that so taxes must go up very high and quickly. Under the respective tables are links where you can doenload original 2 page CBO douments to verify the data in the tables.
Interest Costs on National Debt
2012: $233 billion or 1.3% of US GDP.
2024: $880 billion or 3.3% of US GDP.
CBO: Interest on US National Debt to increase 400% from 2014 to 2024
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