US Government Interest Payments to Tax Receipts, Average Interest Rate on the Debt, and Debt-to-GDP Ratio in Q1 2025

US Government Interest Payments to Tax Receipts, Average Interest Rate on the Debt, and Debt-to-GDP Ratio in Q1 2025

Update on an ugly situation.

U.S. Government Interest Payments to Tax Receipts, Average Interest Rate On the Debt, and Debt-to-GDP Ratio in Q1 2025

by Wolf Richter Wolf Street Update on an ugly situation. A key issue of the US government fiscal situation: What portion of the tax receipts are eaten up by interest payments on the monstrous and ballooning federal debt. At the peak of the last crisis in the early 1980s, that ratio had exceeded 50%. It was a crisis because the 10-year Treasury yield was over 10% for six years in a row and mortgage rates were over 10% for 12 years in a row, an un…