My Solution to Reduce U.S. National Debt

Spoiler alert:  It isn't just increasing income tax revenue.

The U.S. debt is $37.9 trillion as of October 1, 2025.

U.S. debt per person is $111,437 for a population of 340.1 million

U.S. debt per household is $296,094 for 128 million households.

People think taxing billionaires will solve the issue.

Let's do the math.

There are 1135 billionaires in the U.S with a total net worth of $5.7 trillion.  The U.S. annual budget is 7.01 trillion with a budget deficit was $1.8 trillion in 2025 . Transferring all  $5.7 trillion would only reduce the national debt ONE TIME by that amount and the national debt would continue to grow.  

If taking all of current billionaires wealth doesn't solve the issue, then only having higher taxes on the rich doesn't either.

To solve the national debt crises, the U.S. needs to start reducing spending.  By a lot.  Like over $2 trillion a year.  Increasing tax revenue can be part of the solution, but is not sufficient by itself.

For more on The Practice of Personal Finance, check back every  Wednesday  for a new segment.

This is not financial nor national debt advice. Please consult a professional advisor.

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