‘America is going bankrupt’: Elon Musk issues dire warning as interest on US debt was equal to 76% of income tax collected in June — and is expected to exceed $1.14 trillion this year

Antoni expressed his concern about America’s fiscal challenge in a post on X, writing, “Interest on the federal debt was equal to 76% of all personal income taxes collected in June - that's the Treasury's largest source of revenue and three-quarters of it gets consumed just by interest; does Congress know? Do they even care?”

‘Be prepared’

The reality is, while the U.S. has long boasted a strong and expanding economy, its national debt has also been rising — at an alarming pace.

To illustrate, U.S. federal government debt stood at $5.77 trillion at the start of 2000, more than doubled to $12.77 trillion by the beginning of 2010, and escalated to $23.22 trillion at the start of 2020.

The most recent increase has been particularly startling, with the national debt reaching $34.94 trillion, per the latest figures from the Treasury Department.

This escalation in debt has led to rising interest payments, exacerbated by the Federal Reserve's substantial interest rate hikes since March 2022. Consequently, interest costs are mounting.

For the current fiscal year, the Treasury Department expects interest payments on treasury debt securities to total $1.14 trillion.

While the projected number is substantial, Antoni remains skeptical. He suspects that the fiscal challenges could be even greater, remarking, “If that estimate is anything like their usual overly optimistic projections, then be prepared for it to be much higher.”