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Americans could owe $6.5 trillion for wars in Afghanistan and Iraq -- and that's just the interest
Last edited Thu Aug 19, 2021, 07:16 AM - Edit history (1)
Americans could owe $6.5 trillion for wars in Afghanistan and Iraq — and that's just the interest
BY RACHEL LAYNE
UPDATED ON: AUGUST 18, 2021 / 2:29 PM / MONEYWATCH
Although the U.S. is trying to turn the page on two decades of war in the Middle East, American taxpayers can expect to pay for those conflicts for decades to come.
The ultimate cost of the nation's engagements in Afghanistan and Iraq, on top of the incalculable personal toll on combatants and civilians, reflects a shift in how war has typically been financed. From the American Civil War through the Korean War, the U.S. government has mostly paid for its conflicts through taxes and war bonds. But in the post-September 11 era, U.S. military spending has been financed almost entirely through debt.
Since the September 11 attacks, the U.S. government has spent $2.2 trillion to finance the wars in Afghanistan and Iraq, according to figures from Brown University's Costs of War Project. Yet that sum — which amounts to roughly 10% of the the country's total gross domestic product — only reflects upfront costs.
Including the cost of interest on those wars will add an additional $2.1 trillion by 2030. And through 2050, the interest alone is forecast to top $6.5 trillion — even if war spending had theoretically stopped in 2019, according to research published last year from Heidi Peltier, director of the "20 Years of War" Project at Boston University's Pardee Center for the Study of the Longer-Range Future.
{snip}
Tax hikes in previous wars
Previous wars were largely paid for by taxes. For example, President Harry Truman temporarily raised the top tax rate on the richest Americans to 92% to help pay for the Korean War. And President Lyndon Johnson temporarily raised the top rate to 77% to fund the Vietnam War.
At the outset of the wars in Afghanistan and Iraq under President George W. Bush, however, Congress cut taxes by roughly 8% for the wealthiest Americans. Since then, war costs haven't been included in the regular defense budget, experts have noted.
{snip}
BY RACHEL LAYNE
UPDATED ON: AUGUST 18, 2021 / 2:29 PM / MONEYWATCH
Although the U.S. is trying to turn the page on two decades of war in the Middle East, American taxpayers can expect to pay for those conflicts for decades to come.
The ultimate cost of the nation's engagements in Afghanistan and Iraq, on top of the incalculable personal toll on combatants and civilians, reflects a shift in how war has typically been financed. From the American Civil War through the Korean War, the U.S. government has mostly paid for its conflicts through taxes and war bonds. But in the post-September 11 era, U.S. military spending has been financed almost entirely through debt.
Since the September 11 attacks, the U.S. government has spent $2.2 trillion to finance the wars in Afghanistan and Iraq, according to figures from Brown University's Costs of War Project. Yet that sum — which amounts to roughly 10% of the the country's total gross domestic product — only reflects upfront costs.
Including the cost of interest on those wars will add an additional $2.1 trillion by 2030. And through 2050, the interest alone is forecast to top $6.5 trillion — even if war spending had theoretically stopped in 2019, according to research published last year from Heidi Peltier, director of the "20 Years of War" Project at Boston University's Pardee Center for the Study of the Longer-Range Future.
{snip}
Tax hikes in previous wars
Previous wars were largely paid for by taxes. For example, President Harry Truman temporarily raised the top tax rate on the richest Americans to 92% to help pay for the Korean War. And President Lyndon Johnson temporarily raised the top rate to 77% to fund the Vietnam War.
At the outset of the wars in Afghanistan and Iraq under President George W. Bush, however, Congress cut taxes by roughly 8% for the wealthiest Americans. Since then, war costs haven't been included in the regular defense budget, experts have noted.
{snip}
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