National Debt Interest to Consume 1 in 4 Tax Dollars by 2036

Detected March 27th, 2026

Summary

A Tax Foundation analysis projects that by 2036, interest payments on the national debt will consume one in four federal tax dollars. This analysis highlights the growing fiscal challenge posed by the national debt and its impact on federal spending priorities.

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What changed

The Tax Foundation projects that interest payments on the U.S. national debt will account for approximately 25% of all federal tax revenue by 2036. This projection underscores the increasing burden of debt servicing on federal budgets, potentially diverting funds from essential programs and services.

While this document is an analysis and not a regulatory mandate, it serves as a critical alert for policymakers and the public regarding fiscal sustainability. Compliance officers in sectors heavily influenced by government spending or taxation should note the potential long-term implications for fiscal policy and budget allocations. The analysis suggests that without addressing the national debt, other fiscal priorities will be increasingly constrained.

Source document (simplified)

It’s a common question that Utahns direct to their governments at all levels — especially during tax A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. filing season. Where do our tax dollars go?

At the federal level, they fund our federal defense and programs like Social Security and Medicare. But increasingly, our tax dollars are being used just to pay the interest on our growing national debt.

If our budget challenge isn’t a problem our leaders are willing to address, little else should be made of our other fiscal successes.

This is a preview of our full op-ed originally published in Deseret News.

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About the Author

Expert

Daniel Bunn

President and CEO Daniel Bunn is President and CEO of the Tax Foundation. Daniel has been with the organization since 2018 and, prior to becoming President, successfully built its Center for Global Tax Policy, expanding the Tax Foundation’s reach and impact around the world. Prior to joining the Tax Foundation, Daniel worked in the United States Senate at the Joint Economic Committee.