Government applies entire surplus to federal debt
2005 federal surplus: $13 504 000 000
2005 interest paid on debt: $21 353 000 000 (4%)
2005 net federal debt: $523 344 000 000
Minus 2005 federal surplus of $13 504 000 000
2006 net federal debt: $509 840 000 000
2006 interest paid on debt (assuming same interest rates as 2005): $21 353 000 000 / $523 344 000 000 * $509 840 000 000 = $20 802 000 000
2006 (and every year going forward) savings from 2005 debt repayment: $551 000 000
I suggested that they apply it to *our* mortgage, but short of that, this makes total sense to me.
One final calculation – net 2005 federal debt per person: $16 354.
Ugh.