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100 million payments: Chaos for Treasury if we hit the debt ceiling

The bills due that day include $30 billion in interest on the debt; $6.8 billion in IRS refunds; $3.5 billion in federal salaries and benefits; $2.7 billion in military active pay; $2.3 billion in Medicare and Medicaid payments; $1.5 billion to defense vendors; $1.1 billion in safety net spending, including for food stamps and unemployment benefits; and $4.4 billion in other spending.

On March 1, Treasury will take in an estimated $20 billion in revenue. But that won’t be enough to cover the $25 billion in Social Security payments due that day, let alone the $58 billion in other bills.

Republicans say they won’t raise the debt ceiling unless Democrats commit to substantial spending cuts. And some say that the country can avoid technical default so long as Treasury prioritizes interest payments owed to U.S. bond investors over everyone else.

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Treasury will take in an estimated $20 billion in revenue. But that won’t be enough to cover the $25 billion in Social Security payments due that day, let alone the $58 billion in other bills.

They unknowingly just admitted that we spend too much.

MoreLiberty on January 8, 2013 at 4:36 PM

SS folks won’t like that and be sure the lsm will be bashing the gop for killing grandma

cmsinaz on January 8, 2013 at 4:38 PM

Any middle-level manager in the country could prioritize those payments in an afternoon. If the credit cards get cut up, the triage on bill payment is actually not a difficult intellectual exercise.

TexasDan on January 8, 2013 at 4:44 PM

Is there no end to this madness?

Mycroft on January 8, 2013 at 4:49 PM

Republicans say they won’t raise the debt ceiling unless Democrats commit to substantial spending cuts.

Sounds good, but John Boehner will screw everything up, for the umpteenth time. The debt ceiling will be raised, and no serious spending cuts will be enacted.

Bank on it.

Norwegian on January 8, 2013 at 4:49 PM

They unknowingly just admitted that we spend too much.

MoreLiberty on January 8, 2013 at 4:36 PM

Also notice that servicing the debt cost more than SS.

And this is with historic lows on debt interest.

Yeah – we’re totally screwed.

gwelf on January 8, 2013 at 4:53 PM

Up at the plate, Rep. Boehner – swing and a miss, swing and a miss, swing and a miss.

I’m actually giving him too much credit for even lifting the bat off his shoulder. Likely he will be called out just looking.

Panther on January 8, 2013 at 5:00 PM

Treasury will take in an estimated $20 billion in revenue. But that won’t be enough to cover the $25 billion in Social Security payments due that day,

This of course exposes the lie that we have billions of dollars in a “trust fund” that is just waiting to be spent whenever there are any short falls in Social Security.

HidetheDecline on January 8, 2013 at 5:06 PM

zzzZZZZzzzzzZZZZZzzzzz….these debt ceiling stories are a waste of time. Everyone knows Congress will raise the debt ceiling, blah, blah, blah…political theatrics…..

albill on January 8, 2013 at 5:09 PM

Just run it all through Turbo Tax and Treasury will owe nothing.

forest on January 8, 2013 at 5:11 PM

I do believe we have a random act of journalism here.

nobar on January 8, 2013 at 5:21 PM

When the refund checks are delayed (or better yet – come back as Californiaeque IOUs) it SHOULD open some eyes in this country to the fact we’re out of money. I won’t bet on it – but that’s what SHOULD happen in a sane world.

CycloneCDB on January 8, 2013 at 5:23 PM

100 million payments

“Shared sacrifice”

theperfecteconomist on January 8, 2013 at 5:32 PM

Need more revenue. Federal Sales Tax to kill the state monopoly on sales tax.

Mormontheman on January 8, 2013 at 5:41 PM

Apparently I should file my IRS return sooner rather than later.

eyesky on January 8, 2013 at 5:44 PM

Yeah but Obama finally got to raise taxes on the rich. Surely more revenue will be pouring into the Treasury and all their problems will be solved, right?

supernova on January 8, 2013 at 6:16 PM

Leave it to the LIbErals to start in with scare tactics. Everyone now knows that the Democrat Party’s Tax Increases fixes ALL of our economic problems. /s

DannoJyd on January 8, 2013 at 6:33 PM

On March 1, Treasury will take in an estimated $20 billion in revenue. But that won’t be enough to cover the $25 billion in Social Security payments due that day, let alone the $58 billion in other bills.

So, you can only pay bills with the revenue that comes in on the day the bills are due?

xblade on January 8, 2013 at 6:56 PM