Accounting for annual government borrowing of $2 trillion, the speaker estimates that debt-interest payments could consume more than 60% of tax revenue, up from roughly 40%.

“um so you go from 20 percent of the supposed interest rates rise uh one percent then the um over a five-year basis the amount of the fraction of tax revenue that goes towards servicing the debt basically goes from 20 percent to 25 percent if they rise five percentages that would go towards like north of 40 percent but if you take into account the fact the government is borrowing two trillion dollars”

“every single year,”

“then that goes from like 40% to like north of 60%. So 60% of tax revenue basically just goes towards paying interest payments on the debt.”