Thread

1. missedthecue · 1790820728 · focus · HN ↗

   In 2026, entitlement spending + interest expense will be over 100% of federal tax revenue.

   That's before the military, foreign aid, and everything that starts with "Department of"

   1. margalabargala · 1790821186 · focus · HN ↗

      Not sure why you're getting downvoted. I thought you were wrong, looked it up, and you're correct.

      In 2025, federal gov revenues (total, not just tax) were $5.26T: <a href="https:&#x2F;&#x2F;fiscaldata.treasury.gov&#x2F;americas-finance-guide&#x2F;government-revenue&#x2F;" rel="nofollow">https:&#x2F;&#x2F;fiscaldata.treasury.gov&#x2F;americas-finance-guide&#x2F;gover...

      In 2026, entitlements plus interest is projected to cost $5.45T: <a href="https:&#x2F;&#x2F;fiscaldata.treasury.gov&#x2F;americas-finance-guide&#x2F;federal-spending&#x2F;" rel="nofollow">https:&#x2F;&#x2F;fiscaldata.treasury.gov&#x2F;americas-finance-guide&#x2F;feder...

      1. JauntTrooper · 1790824298 · focus · HN ↗

         We would have to raise federal taxes by an average of at least 39% per household and on businesses =just= to balance the deficit.

         The reason the US is a comparably &quot;low tax&quot; country is because we&#x27;re borrowing the difference.

         What worries me the most is that this is at a high point in our economic cycle, when tax collection is arguably the highest. The deficit and debt will expand significantly in the next recession.

         1. whatever1 · 1791003942 · focus · HN ↗

            In America the 6-7figure households pay almost all of taxes. Lower incomes, higher incomes pay almost nothing.

            These are the W2 workhorses who receive also no explicit current benefits from the gov (bar national security). They already pay taxes to the tune of 30-40% for zero benefits.

            It will be hard to tell these folks that they need to pay 60–80% taxes on their W2.

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