A Nebraskan's View

by Senator Ben Nelson

Monday, December 14, 2009 HOW TO HELP FINANCE THE BUILD UP IN AFGHANISTAN As the war in Afghanistan escalates some have suggested increasing taxes, which I think is a bad idea especially at a time when many Americans are still struggling with the economy. We need to get our fiscal house in order, and be honest about the costs of operations in Iraq and Afghanistan. Unfortunately, for the time being that means that the wars will continue to contribute to the federal deficit. I have proposed a patriotic and cost-effective way to finance the wars and reduce our dependence on foreign creditors.

War Bonds 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 significantly different than what we faced in the 1940’s, America’s commitment to protecting freedom and our way of life has not waned.

The commitment to protecting our national security is costly and so far has been a burden shouldered by the men and women in our military and their families. I believe that many Americans if given the opportunity to directly support the effort to protect our national security interest would do so, which is why I have introduced the United States War Bonds Act of 2009.

The Act would authorize the Treasury to issue War Bonds to aid in funding our operations in Iraq and Afghanistan. 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 National Debt As we know all too well, America is deeply in debt. The debt held by the public is more than $7.6 trillion dollars. An equally unsettling fact is that nearly $3.5 trillion – 46 percent – is held by foreign investors. We must get our debt under control, but as we pursue that goal we should also seek a better balance of domestic and foreign creditors.

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. My bill recognizes that now is not the time for additional taxes that can be avoided; but if we’re going to owe a debt to someone, it should be to ourselves.

My legislation will authorize the Treasury to issue and market War Bonds to the American people. Savings 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.