Our national debt is approaching 14 trillion dollars. Its pretty hard to get a feeling of just how big this number really is so lets put it on a personal basis. There were 136 million individual tax returns filed last year but 43 million returns paid no tax.So the remaining 93 million tax returns are on the line to pay off this debt which is financed by treasury bills and notes and bonds. Do the math and if you filed a return and paid taxes then you are in debt for $150000.Surprise.
There is good news and bad. This does not include interest on that debt and we dont have to pay it all this year. Assume we have an average maturity of 15 years. So we can make annual installments of about $10000 ,so put that in your budget.Too much? Well maybe we can get by if we reduce the debt. say just 50%, to a more manageable number. That will reduce our annual debt payment to $5000.Of course we can only squeak by doing this if we dont add more debt.How likely is that?
Remember we owe this money ,it must be paid to individuals here and abroad and countries like China,and teacher and union retirement funds etc. I dont think they will accept an IOU.So start saving and planning because you will have to pay this, in addition to your current federal,state and local taxes.
I know , you don't like it and want an easy way out , like say cutting government spending.Clearly half our spending is mandatory for such things as medicare,food stamps,social security,and interest on that debt.Which one do you want to slash? Still looking for an easy way out ? Here is one, lets take the money out of the defense budget and the cost of those stupid wars. OK and here is what happens. To pay off one half our debt in 15 years we will have to cut the defense budget by 67%.Feel better and safer now.?