Fiscal responsibility and tax cuts-we can’t afford to reduce taxes

Needless to say most Americans are not aware of the following data, don’t actually care and have no idea of the crisis we are possibly facing living on debt. We are headed to a very precarious place.

As of late August 2026

Total national debt – Over $40 trillion

Debt held by the public – About $32.3 trillion

Intragovernmental debt – About $7.8 trillion

Projected FY 2026 deficit – About $1.9 trillion

Deficit as % of GDP – 5.8%

Projected net interest cost, FY 2026 – About $1.0 trillion

Debt held by public as % of GDP – About 101%

The Treasury-reported gross national debt recently crossed $40 trillion for the first time. About $32.3 trillion is debt held by the public, while roughly $7.8 trillion is held by government accounts such as the Social Security and Medicare trust funds.

The deficit remains extremely large

For fiscal year 2026, the Congressional Budget Office’s February baseline projected:

$7.4 trillion in federal spending

$5.6 trillion in revenue

A $1.9 trillion deficit

That means the government is projected to borrow roughly 26 cents of every dollar it spends this fiscal year. The deficit is projected at 5.8% of GDP, compared with a 50-year historical average of about 3.8%.

Interest is now one of the government’s biggest expenses

CBO projects net interest costs of about $1 trillion in FY 2026.

That is especially significant because interest payments provide no direct government services or benefits.

CBO projects net interest costs will rise from about $1 trillion in 2026 to $2.1 trillion by 2036 under its baseline.

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Instead many Americans have this point of view on taxes which is irresponsible if not ignorant. The USA can’t afford any tax cuts – or added unfunded spending.

Every responsible member of Congress should have voted against these tax cuts which were only designed with the November election in mind.