New figures show that the vast majority of Americans’ income taxes are now being swallowed up to pay interest on the country’s national debt.

Economist EJ Antoni reports that, based on June Fed figures, interest on the government debt is equal to 76% of all government income taxes collected.

“The interest on the federal debt was equal to 76% of all personal income taxes collected in June—that’s the single largest source of Treasury revenue, and three-quarters of it is consumed by interest alone; does Congress know? Does it even care?”

According to Antoni, the cost of servicing the federal debt has increased by 33% in one year and will only continue to rise.

The economist also reports that interest on the national debt was the government’s largest expenditure in June, far exceeding other major public services. The Treasury Department expects the $1.14 trillion mark to be broken this fiscal year.

“Consider it a catch-up: Interest on the debt surpassed both the Department of Health and Human Services and the Social Security Administration, becoming the largest item on the Treasury Department’s monthly bill for June. Still OK with that?

The Treasury Department now expects interest on the federal debt to exceed $1.14 trillion this fiscal year. If that estimate is anything like their usual overly optimistic forecasts, be prepared for it to be much higher.”

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