Cost Of Iraq Invasion Severely Underestimated; Administration Needs To Release Information On How To Fund War, Says Group

11/1/2002

From: Keith Ashdown of Taxpayers for Common Sense, 202-546-8500 ext. 110

WASHINGTON, Nov. 1 -- Cost estimates on the potential invasion and occupation of Iraq are alarmingly low and ignore major costs to taxpayers, says Taxpayers for Common Sense, a national budget watchdog organization.

"The cost of 'regime change' will be in the hundreds of billions of dollars," said Nate Heasley, Program Director at Taxpayers for Common Sense. "With this new information about increased costs for the war, the Bush administration needs to immediately disclose their plan to pay for it."

With a federal deficit expected to top $200 billion next year, the administration has some hard choices to make. News stories have reported that there could potentially be a 10 percent reduction in spending for some government agencies to help pay for the war.

"With no other country currently willing to pay a dime for this war, it could have major implications on spending at home. Efforts to save social security, pay for prescription drug benefits and education initiatives, and to increase domestic security will be severely affected," continued Heasley.

If the Bush administration determines an Iraq invasion is necessary, it should only do so with both the diplomatic and financial support of allies, including those in the region that stand to benefit from Saddam Hussein's removal. "The administration has to make it a priority to find other countries to share this financial burden or it will leave the United States in a financially and militarily vulnerable position at the same time as we are trying to win a war on terrorism," stated Heasley.

The Congressional Budget Office (CBO) and others have estimated that invading and occupying Iraq would cost between $40 billion and $200 billion. However, those figures do not realistically estimate the costs of deploying troops, prosecuting a war with Iraq, or the subsequent occupation of Iraq that many analysts suggest will be necessary to provide stability in the region. An Iraq war is likely to cost tens of billions more than the $200 billion estimate provided by President Bush's lead economic advisor, Lawrence Lindsey.

Cost estimates are crucial to providing the public the ability to consider the level of investment that will be needed for this military action.

"Taxpayers shouldn't be forced to write a blank check for a war on Iraq. We deserve to know what sacrifices we will need to make at home in order to fund the war. It is vital that we are provided accurate cost estimates, but based on our initial research, this war is likely to cost tens of billions more than has been advertised," concluded Heasley.

For more information about the Iraq cost estimates, please go to www.taxpayer.net

------ Taxpayers for Common Sense (TCS) is a non-partisan voice for American taxpayers. TCS is dedicated to cutting wasteful spending and subsidies in order to achieve a responsible and efficient government that lives within its means.

TCS is currently writing a white paper that will provide the complete potential costs of the Iraq invasion and occupation.