New War Bonds Provide Patriotic Investment Option
The Senate has already passed a bill to authorize the issue of war bonds, and the House is expected to follow suit quickly.
Proceeds from the sale of war bonds go to the government untargeted, so the money can be used at the discsretion of the federal government. War bonds were a popular method of funding government activities both during World War I and World War II.
"War bonds will give voice to countless Americans who are looking for opportunities to make a difference in this time of need," said Sen. Mitch McConnell, R-Ky., the main Senate sponsor.
Tom Ochsenschlager, tax partner at Grant Thornton LLP, made the point that the bonds are mostly symbolic, and that the government will do whatever it takes to finance the anti-terrorism effort.
Once approved, it will take several months for the Treasury Department to put the program in place.