Step 3: SNAPP Inc. and the three pillars of The Economy
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United States government reveals unique way to reduce soaring $39T debt
Anand Sinha
Mon, 27 April at 12:13 pm GMT -5 .2 min read
According to the Department of the Treasury, the U.S. national debt has soared from $19.59 trillion in 2010 to $38.94 trillion currently.
In fact, the Committee for Responsible Federal Budget (CRBF) estimated that the Supreme Court ruling against President Donald Trump’s tariffs has cost the government around $1.7 trillion in projected revenue through 2036. It means the national debt would rise to $58 trillion (125% of GDP) within the next decade.
No doubt, Washington is concerned and keeps devising new ways to reduce the debt. One of these ways is public contribution.
Yes, the U.S. Treasury accepts gifts from Americans to reduce debt and accepted payment method included:
- Bank account (ACH)
- Debit or credit card
- PayPal account
- Venmo account
What is the national debt?
The national debt $38.95T is the total amount of outstanding borrowing by the U.S. Federal Government accumulated over the nation history.
$38,951,791,901,141
Updated daily from the Debt to Penny dataset.
Key Takeaways:
- The National Debt Explained
- Funding Programs and Services
- The Growing National Debt
- Breaking Down the Debt
- The Debt Ceiling
- Tracking the Debt
The national debt is composed of distinct types of debt, similar to an individual whose debt may consist of a mortgage, car loan, and credit cards. The different types of debt include non-marketable or marketable securities and whether it is debt held by the public or debt held by the government itself (known as intragovernmental). The U.S. has carried debt since its inception. Debts incurred during the American Revolutionary War amounted to $75 million, primarily borrowed from domestic investors and the French Government for war materials.
The national debt enables the federal government to pay for important programs and services for the American public.
The National Debt Explained:
The national debt is the amount of money the federal government has borrowed to covered the outstanding balance of expense incurred over time. In a given fiscal year (FY), when spending (ex. money for roadways) exceeds revenue (ex. money from federal income tax), a budget deficit results. To pay for this deficit, the federal government borrow money by selling marketable securities such as Treasury bonds, bills, notes, floating rate notes and Treasury inflation-protected securities (TIPS). The national debt is the accumulation of this borrowing along with associated interest to the investors who purchased these securities. As the federal government experience reoccurring deficits, which is common, the national debt grows.
Simply put, the national debt is similar to a person using a credit card for purchases and not paying off the full balance each month. The cost of purchases exceeding the amount paid off represents a deficit, while accumulated deficits over time represents a person’s overall debt.
The U.S. Treasury uses the terms ‘national debt, ‘federal debt,’ and ‘public debt’ interchangeable.
Revenue Spending Deficit
Year 1 $400 $500 -$100
Year 2 $600 $800 -$200
-$300
Debt Funding Program and Services:
The federal government needs to borrow money to pay its bills when its ongoing spending activities and investments cannot be funded by federal revenue along. Decreases in federal revenue are largely due to either a decrease in tax rate or individuals or corporations making less money. The national debt enables the federal government to pay for important programs and services even if it does not have funds immediately available, often due to a decrease in revenue. Decreases in federal revenue coupled with increase government spending further increases the deficit.
Consistent with the purpose of the federal government established by the U.S. Constitution, money is spent on program and services to ensure the well-being of U.S. residents. The Constitution’s states that the purpose of the federal government is ‘to establish Justice, ensure domestic Tranquility provide for common defense, promote the general Welfare, and secure the Blessing of Liberty to ourselves and our Posterity.’ Uninterrupted funding of programs and services is critical to residents’ health, welfare, and security.
What are some of the major spending categories
In accordance with the 2014 DATA Act, federal agencies are required to submit financial data on a quarterly and/or monthly basis to USAspending.gov. Anyone can visit USA spending for a breakdown of what the federal government spends each and how it spends that money. Visitors can follow the money from the Congressional appropriations to the federal agencies and down to local communities and businesses.
The Growing National Debt:
The U.S. has carried debt almost continuously since its inception. Debt incurred during the Revolutionary War amounted to over $75 million by January 1,1791. Over the next 45 years, the debt continued to grow until 1835 when it was briefly eliminated due to the sale of federally-owned lands and cuts to the federal budget. Shortly thereafter, additional wars caused the debt to increase again. The debt grew over 4,000% through the course of the American Civil War, increasing from $65 million in 1860 to $1 billion in 1863 and almost $3 billion shortly after the conclusion of the war in 1865. The debt grew steadily into the 20th century and was roughly $22 billion after the county financed its involvement in World War 1.
Notable recent events triggering large spikes in the debt include the Afghanistan and Iraq Wars, the 2008 Great Recession, and the COVID-19 pandemic. From FY 2019 TO FY 2021, spending increased by about 50%, largely due to the COVID-19 pandemic. Tax cuts, stimulus programs, increased government spending, and decreased tax revenue caused by widespread unemployment generally account for sharp rises in the national debt.
U.S. National Debt Over the Last 100 Years:
Inflation Adjusted – 2025 Dollars
2025: $37.64 T
Sept 2025: Total Debt
Over the past 100 years, the U.S. Federal debt has increased from $380 Billion in 1925 to $37.64 Trillion in 2025.
Comparing a country’s debt to its gross domestic product (GDP) reveal the country’s ability to pay down its debt. This is considered a better indicator of a country’s fiscal situation than just the national debt number because it shows the burden of debt relative to the country total economic output and therefore its ability to repay it. The U.S. debt to GDP ratio surpassed 100% in 2013when both debt and GDP were approximately 16.7 trillion.
Federal Debt Over Time, FY 1948 – 2025
Debt to Gross Domestic Product (GDP): 2025 - 124% - Fiscal Year - Debt to GDP
Visit the Historical Debt Outstanding dataset to explore and download this data. The GDP data is released, even if new debt data is available.
Please note: This chart is updated as new GDP data is released, even if new debt data is available
Last Updated: September 30, 2025
The average GDP for fiscal year 2025 was $30.36 Trillion, which was less than the U.S. debt of 37.64 trillion. This resulted in a Debt to GDP Ratio of 124 percent. Generally, a higher Debt to GDP ratio indicated a government will have greater difficulty in repaying its debt.
Visualizing debt – How much is $39 trillion dollars?
Breaking Down the Debt:
The national debt is composed of distinct types of debt, similar to an individual whose debt consists of a mortgage, car loan, and credit cards. The national debt can be broken down by whether it is non-marketable or marketable and whether it is debt held by public or debt held by government itself (known as intragovernmental. The national debt does not include debts carried by state and local governments, such as debt used to pay state-funded program; nor does it include debts carried by individuals, such as personal credit card debt or mortgages. The visual below comparing calendar year 2016 and 2026 displays the difference in growth between debt held by the public and intragovernmental debt. While both types of debt combine to make up the national debt, they have increased by different amounts in the past several years. One of the main causes of the in public debt can be attributed to increase funding of programs and services during the COVID-19 pandemic. Intragovernmental debt has not increased by quite as much since it is primarily composed of debt owed on agencies excess revenue invested with the Treasury. The revenue of the largest investor in Treasury securities, the Social Security Administration, has nor increased significantly in recent years, resulting in this slower intragovernmental holding increase.
Intragovernmental Holding and Debt Held by the Public,
CV 2016 and CY 2026
______________________________________________
2016 2026
Visit the U, S. Treasury Monthly Statement of the Public Debt (MSPD) to explore and download this data.
Last Updated; March 31, 2026
There are two major categories for federal debt: debt held by the public and intragovernmental holdings.
The debt held by the public has increased by 126% since 2016.
Intragovernmental holding increased by 43% since 2026
Maintaining the National Debt
The federal government is charged interest for the use of lenders money, in the same way that lenders charge an individual interest for a car loan or mortgage. How much the government pays in interest depends on the national debt and the various securities interest rates.
As of March 2026, it costs $623 billion to maintain the debt, which is 17% of the total federal spending in fiscal year 2026.
The national debt has increased every year over the past ten years. Interest expenses during this period have remained fairly stable due to low interest rates and investors judgement that the U.S. Government has a very low risk of default. However, recent increases in interest rates and inflation are now resulting in an increase in interest in expense.
As interest rates increase, the cost of maintaining the national debt also increases. These impacts grow as the debt also increase. To view the relationship with interest rates and interest expense, check out this Interest Expense Insight.
Why can’t the government just print more money?
The Debt Ceiling:
The debt ceiling, or debt limit, is a restriction imposed by Congress on the amount of outstanding national debt that the federal government can have. The debt ceiling is the amount that the Treasury can borrow to pay the bills that have become due and pay for the future investments. Once the debt ceiling is reached, the federal government cannot increase the amount of outstanding debt, losing the ability to pay bills and fund programs and services. However, the Treasury can use extraordinary measures authorized by Congress to temporarily suspend certain intragovernmental debt allowing it to borrow to fund programs or services for a limited amount of time after it has reached the ceiling.
Since the United States has never defaulted on its obligation, scope of the negative repercussions related to a default are unknown but would likely have catastrophic repercussions in the United States and in markets across the globe.
How is the debt ceiling different from a government shutdown?
Tracking the Debt:
Created in 2012 and operating under the Department of Treasury, the Bureau of the Fiscal Service manages all federal payments and collections and provides government-wide accounting and reporting services. A primary function of the Fiscal Service is to account for and report the national debt, as dictated by the U.S. Constitution, which states that ‘regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.
SNAPP Inc.
Taxing the Middle Class and The Big Business
Taxing the big business, wealthy, middle class and the labor force is an escapism to the real problem
Some people say if the wealthy paid the same percentage of their income in taxes that the middle class and labor force pay, we would not be in debt.
But in order to fix the problem we must understand the difference between wealth and income wage, how do the two grow and operate.
The voters’ eyes are fixed on the tax rate but is that our real problem or is its different types of income and how the two are taxed, could this be where the unfairness exist.
Let’s examine the real problem and how it is executed. When I get my salary, taxes come out immediately. That is called executing the economic.
When a billionaire’s stock portfolio increases in value by millions, they don’t pay taxes on the growth until or unless they sell that stock. That’s call operating the economic.
The wealthy have something where they defer taxes but people like the middle class and labor force can’t defer taxes on our paychecks or borrow against our retirement account without paying penalties.
Middle class families do not have an engineered program that allow them to defer taxes on wages or borrow against stocks tax free.
This creates a fundamental unfairness where the middle class and the working class who work for their money get taxed immediately while the wealthy whose money grows through investments can delay it even avoid those taxes entirely.
The current system allows their wealth to grow in a way that are largely untaxed while the middle-class worker pay taxes on every dollar they earn
The goal is to successfully even the playing field for the middle class and the work force like the billionaires the results would mean hundreds of billions in additional revenue annually and better funding for the wealth fund projects.
What is a neighborhood?
What is a community?
Community Group Economic
Learn the rules of the game and play by the rules of the game.
These will be your results.
Results:
- Access to more income.
- Decrease cost of living.
- Increase local productivity.
- Decrease local taxes.
- Increase local sales tax.
- Create ownership society.
- Redistribute resources and wealth.
- Asset to society/taxpaying citizen.
- Tangible buy local program.
- Sovereign wealth fund.
