RSS
December 8, 2009 – Working to help fund ongoing wars without sharp tax increases or increased foreign borrowing, Nebraska’s Senator Ben Nelson today introduced the United States War Bonds Act of 2009. The legislation will authorize the Treasury to issue and market War Bonds to the American people to help finance the wars in Afghanistan and Iraq.
“I believe that we need shared sacrifice and fiscal discipline in financing the war effort,” said Senator Nelson. “I don't believe our first instinct should always be a rush to tax. The government has gone to great lengths to address the economic downturn and adding new taxes right now could undermine those efforts. We need to work to reduce federal spending wherever possible and reduce the growth in spending to finance the important missions in Afghanistan and Iraq.
“War bonds are a cost-effective way to reduce our dependence on foreign creditors and create an outlet for Americans to express their patriotism and support for our servicemembers and America’s mission. War bonds allow us to borrow from ourselves, rather than other countries.”
The US War Bonds Act of 2009 finds a precedent in World War II savings bonds. From May 1, 1941 through December 1945, the War Finance Division and its predecessors were responsible for the sale of nearly $186 billion worth of government securities. Of this, more than $54 billion was in the form of War Savings bonds.
“Although the times and economic circumstances are different than the 1940’s, America’s commitment to protecting freedom and our way of life has not waned,” said Nelson. “My hope is that we can tap into the same spirit of patriotism and create a sense of participation in the war effort akin to that shown by the greatest generation.”
The new military strategy increasing troops by 30,000 for Afghanistan announced last week by President Obama is estimated to cost $30 billion beyond the baseline for Iraq and Afghanistan funding, which stands around $130 billion for 2010. The United States public debt is currently more than $7.6 trillion dollars and nearly $3.5 trillion – 46 percent – of the debt is held by foreign investors.
United States savings bonds are considered some of the safest investments in the world. They are available in predetermined denominations and mature over a period of time while accruing interest. After a number of years, the owner of the bond can collect the face value cost of the bond plus interest. All US savings bonds are backed by the full faith and credit of the United States government.
The full text of the bill is available by clicking here.
###
Search: Afghanistan, Defense, Economy, Budget, National Security, Press