Add in Fed tax collection

Gene Sperling

@genebsperling

And to be clear: the net interest cost as % of GDP in 2030 is now 2.2%, which is LOWER than the 2.6%, CBO was projecting pre-COVID (March 2020).

If you add in the tax collection, about 100 billion a year, then the number goes up from around 2.2 to 2.8 of GDP.  Do not start flat earthing on this.

So what, the Fed collects taxes, you say.  These taxes are unlegislated, if that matters. But interest rates not not that low.  They seem low because the Fed is a tax collector.  If not for that the real ten year rate would be around 1.5%, not .7%.

Gen Sperling needs to connect the dots. He cannot go on spewing this flat earth crap and be credible.