This week, the U.S. Treasury confirmed what many economists feared: the national debt has officially crossed the $37 trillion mark. That’s not just a number—it’s a flashing red light on America’s fiscal dashboard. And it’s happening years ahead of schedule, thanks to pandemic-era borrowing and a new wave of government spending.
But here’s the twist: this milestone arrives just weeks after the passage of the so-called “Big Beautiful Bill,” a budget law championed by President Trump that promises tax relief for overtime workers. On the surface, it sounds like a win for hardworking Americans. Dig deeper, though, and you’ll find a policy that’s more cosmetic than corrective.
Debt Is Rising—Fast
The Congressional Budget Office had projected we wouldn’t hit $37 trillion until after 2030. But between COVID-19 stimulus packages, economic recovery efforts, and now a $4.1 trillion tax-and-spending law signed earlier this year, we’ve accelerated into dangerous territory.
Michael Peterson of the Peter G. Peterson Foundation warns that we’re now adding a trillion dollars to the debt every five months—twice the rate of the last 25 years.
The Big Beautiful Bill: A Mirage of Relief
The “Big Beautiful Bill” was marketed as a game-changer: no federal income tax on overtime pay. Retroactive to January 2025, it promised workers a bigger slice of their paycheck. But the reality is far more limited:
- Only the “half” portion of “time-and-a-half” pay is tax-free.
- State and local taxes still apply.
- Social Security and Medicare taxes are untouched.
- There’s a cap: $12,500 per person annually.
- High earners are excluded entirely.
In short, it’s a partial tax break wrapped in political branding. And while it may offer modest relief to some, it does little to address the structural issues driving our debt skyward.
What’s Really at Stake?
Unchecked debt has real consequences:
- Higher interest rates on mortgages, car loans, and credit cards.
- Lower wages as businesses scale back investment.
- Reduced public services as interest payments crowd out funding for education, infrastructure, and healthcare.
Wendy Edelberg of Brookings warns that the new law means “we’re going to borrow a lot over the course of 2026, we’re going to borrow a lot over the course of 2027, and it’s just going to keep going”.
A Call for Real Reform
Maya MacGuineas of the Committee for a Responsible Federal Budget put it bluntly: “Hopefully this milestone is enough to wake up policymakers to the reality that we need to do something, and we need to do it quickly”.
Call to Action: From Debt to Dignity
This isn’t just about numbers—it’s about values. It’s about whether our government prioritizes short-term optics or long-term equity. If we want a future where economic justice is more than a slogan, we must demand:
- Transparent fiscal policy that serves people, not politics.
- Equitable tax reform that uplifts working families.
- Community-centered budgeting that invests in education, housing, and health—not just interest payments.
Let’s raise our voices. Let’s organize. Let’s hold leaders accountable—not just for what they spend, but for who they serve.
Join the movement. Share this post. Start the conversation. And let’s build a future where our national budget reflects our national values.
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