I was curious on how much of U.S. tax payer revenue was going to interest payment on government debt at this time compared to history and surprisingly the U.S. is doing very well.
Tax revenue data came from here and is at almost $3 trillion annually ($2.683 trillion to be exact).
Interest expense on debt data came from here and is at $400 billion.
If we just divide those two then we get chart 1.
And yes, surprisingly, the interest payment to bond holders is going down compared to the tax revenue the federal government is getting today. Historically, we had the highest interest payment to revenue ratio in 1991, which was 26%. Of course, the interest rate was much higher then.
|Chart 1: Interest Expense to Federal Receipt Ratio|
If we were to have the interest rate of 1991 today (7% for 10 year U.S. bonds). I bet we would be higher than 26% already.