Taxfoundation iconTaxfoundationAug 28, 2026

Four Ways US Bond Markets Affect Tax Revenue

Federal government debt is over $32 trillion, around the size of the nation's annual economic output (its gross domestic product, or GDP). Debt levels this high mean US borrowing costs are sensitive to interest rate changes that may otherwise seem small.

Four Ways US Bond Markets Affect Tax Revenue

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Federal government debt is over $32 trillion, around the size of the nation's annual economic output (its gross domestic product, or GDP).

Debt levels this high mean US borrowing costs are sensitive to interest rate changes that may otherwise seem small.

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The useful part

Federal government debt is over $32 trillion, around the size of the nation's annual economic output (its gross domestic product, or GDP). Debt levels this high mean US borrowing costs are sensitive to interest rate changes that may otherwise seem small.

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