Treasury Secretary Scott Bessent dismissed raising taxes to fund the U.S. military campaign in Iran as “not at all” under consideration, calling the idea “ridiculous,” in an exclusive interview on NBC’s Meet the Press on Sunday.
“Why would we do that?” Bessent said. “We have a trillion dollars in this year’s budget for the military.”
War Costs Surge As Administration Confident
The remarks came as the war’s costs have climbed. National Economic Council Director Kevin Hassett, appearing on CBS’s Face the Nation, confirmed the operation has already cost $12 billion, up from $11.3 billion presented to lawmakers covering just the first six days of fighting, including $5.6 billion in munitions in the first two days alone.
Hassett said the administration has what it needs for now and is “not necessarily” seeking a supplemental package, adding that the effort is “ahead of schedule.”
Congress painted a different picture. House Speaker Mike Johnson (R-La.) called a military supplemental “inevitable.” By March 20, the Pentagon requested more than $200 billion from the White House for approval to present to Congress. Defense Secretary Pete Hegseth defended the request bluntly, saying it “takes money to kill bad guys.”
Iran’s Foreign Minister Seyed Abbas Araghchi called the $200 billion figure “the tip of the iceberg,” warning American taxpayers face a far larger burden and blaming Prime Minister Netanyahu for drawing Washington into the conflict without a firm plan. Iranian officials denied any negotiations, accusing Washington of spreading “fake news” to manipulate oil and financial markets.
Democratic Opposition Mounts
Democratic lawmakers voiced criticism of the war spending. Sen. Elizabeth Warren (D-Mass.) said the $12 billion spent could have restored the Child Tax Credit for a year or paid 100,000 teachers and nurses.
Rep. Ro Khanna (D-Calif.) noted $200 billion could fund free college and universal child care. Rep. Jason Crow (D-Colo.) accused Trump of treating taxpayer dollars “like Monopoly money,” while Sen. Bernie Sanders (I-Vt.) called the Pentagon’s request for funding for “an illegal war” and said flatly: “The answer is NO.”
Economists added to the pressure, with Peter Schiff warning the conflict could ultimately exceed $1 trillion and reignite inflation through borrowing and money creation.
Markets React To Temporary Pause
U.S. equities staged a relief-driven rally Monday following a five-day pause in strikes on Iranian energy infrastructure. WTI crude fell nearly 8% to around $90 per barrel.
In Monday’s regular session, the S&P 500 climbed 1.15%, while the tech-heavy Nasdaq rose 1.38%. The 30-stock Dow popped 1.38%, with all three major averages posting their best session since early February.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Recent Comments