House Budget Committee Chairman Jodey Arrington (R-TX) introduced H.R.8372, the Debt Per Taxpayer Information Act, legislation that would inform and educate the American people on the nation’s fiscal trajectory and what it means for them and their families. The legislation would provide each American filing a tax return with information on their W-2 about federal revenues, outlays, and deficits in the latest available tax year, the total gross debt, and the estimated debt per taxpayer. It would also require the President’s budget request and the concurrent budget resolution to include estimates of debt per taxpayer.

The Congressional Budget Office now estimates that our federal debt exceeds $34 trillion. This equates to over $200,000 per taxpayer.

To most Americans, however, these numbers are neither well known nor easily understood due to the immense size and scope of our fiscal woes. The Debt Per Taxpayer Information Act would address this by providing vital financial data on the federal budget to Americans. 

Details of the Debt Per Taxpayer Information Act include: 

Requirements for the W-2:

• Total Federal Government revenue, outlays, and deficit.
• The total gross Federal debt.
• An estimate of the per taxpayer amount of the gross Federal debt.

Requirements for the President’s Budget Request:

• The per taxpayer amount of the debt held by the public and the gross Federal debt for each taxpayer.

Requirements for the Concurrent Budget Resolution:

• An estimate of the per taxpayer amount of the gross Federal debt the prior fiscal year, the current fiscal year, the fiscal year beginning on October 1 of the current calendar year, and ensuing fiscal years.

Bill supporters argue that by calculating and publishing the national debt on a per-taxpayer basis, the bill aims to provide clear and understandable information to the public. This can help taxpayers better grasp the scale of the national debt and its implications for them personally. Increased transparency can lead to greater accountability for government officials and policymakers. When taxpayers are aware of their individual share of the national debt, they may be more motivated to hold their representatives accountable for fiscal decisions.

“Taxpayers should have full transparency regarding how the federal government spends their hard-earned money and the fiscal condition of their country. The Debt Per Taxpayer Information Act will shine a light on our government’s out-of-control spending habits and turn up the heat of accountability on the profligate spending of Washington politicians,” said Chairman Arrington.

The bill will contribute to improving financial literacy among taxpayers. Understanding their share of the national debt can lead to a deeper appreciation of broader economic issues and the importance of responsible fiscal management. By making the debt per taxpayer widely known, the bill can create public pressure on lawmakers to prioritize debt reduction and fiscal responsibility in their legislative agendas.

Opponents argue that simplifying national debt to a per-taxpayer figure is misleading. The national debt is influenced by various factors, including government spending, economic growth, and interest rates. Reducing it to a per-taxpayer figure oversimplifies these complexities and can lead to misinterpretations. In addition, opponents argue that the bill could be used as a partisan tool to promote certain political agendas. By highlighting the debt per taxpayer, proponents might use this information to argue for specific fiscal policies, such as reducing government spending or cutting taxes, without considering the broader economic implications.

Focusing solely on debt per taxpayer ignores the context of overall economic health. For example, it doesn't account for the nation's GDP, revenue, or the investments funded by the debt, which might be beneficial in the long run.

Presenting the national debt in a per-taxpayer format could be seen as fearmongering, aiming to alarm taxpayers about their individual share of the debt without providing context about the benefits of government spending, such as infrastructure, education, and social services. The arguments against H.R.8372 revolve around concerns of misleading representation, potential for political manipulation, negative impacts on public perception and economic behavior, and the administrative burden of implementing the bill's requirements.

Should Congress pass H.R.8372, the Debt Per Taxpayer Information Act?