To remember these two terms, think in reverse: The “long” word, deficit, refers to just the annual money owed during one year. The “short” word, debt, refers to the accumulation of all the annual deficits.

The last time America was debt free was 1837. The last time Congress passed a budget on time was 1996. The last time the U.S. federal budget was balanced and had a surplus was 2001. The current (2023) budget is 6.3 trillion of which 1.5 trillion of that is borrowed. The total federal US debt (accumulated and never paid back) is 33.74 trillion.

The federal fiscal calendar is from October 1 through September 30. In 2021 interest paid on the debt was 352 billion. In 2022 the interest paid was about 476 billion. An estimate for the 2023 interest to be paid is $800 billion. The interest paid on the debt is soon to be the fastest growing slice of the federal budget pie.

340 million American citizens live in the United States. If all were taxed now to pay off the federal debt the average “Fair Share” would be about $99,235 per person: Adults and children alike.

To read more about American Civics visit our sister web site, Bounce Back, at bback.us. 

Sources:
US Treasury Department,
The Peter G. Peterson Foundation
the Congressional Budget Office