US Spends More Than It Earns in 2023

According to the official US FiscalData, for the fiscal year 2023 ended in September 2023, the US government slipped into a deficit of $1.70 trillion on its spending, as the country spent $6.13 trillion, mainly on variety of goods, programs, and services to support the American public and pay interest incurred from borrowing, while collecting revenue of only $4.44 trillion, mainly from individual income taxes.

The revenue per person for the US was $13,341 per person, while the spending was $18,406. Both figures rose by 4% and 63%, respectively, compared to FY2000, reflecting potential growth in population and spending.

The circumstances resulted in an increase in US federal debt, as it accumulated to $33.17 trillion at the end of FY2023, surging by $2.24 trillion compared to 2022. The current public debt is now at $34.46 trillion. Data from the US Treasury Department shows that the US national debt increases by $1 trillion every 100 days.

Meanwhile, the US government carried on its negative trend in 2024 (October 2023–present). Though the government has collected revenue of $1.58 trillion, an increase of 8% YoY, the said amount is still less than the $2.12 trillion spent, which also increased by 10% YoY.

On Monday, the US Treasury stated that the proposed US government budget from President Joe Biden would increase taxes on businesses, wealthy individuals, and estates by $4.951 trillion for a period of over 10 years.

Biden aimed to increase taxes as a part of his election-year budget wish list, which included plans to support low- to middle-income Americans with overwhelming housing and childcare costs while also focusing on cutting the country’s deficit. However, an acceptance of the plan from Congress seemed unlikely.