Napoleon famously said "An Army marches on its stomach." In the same sense, wars are won with money. Of course, brave warriors, capable leadership, advanced technologies, and many other factors are essential. But without the funds to pay for them, victory is impossible.

In the months preceding the election, both the left and the moderates in Congress pounded the American people with the idea that the campaign in Iraq has become too costly and that we cannot possibly continue to fund operations at the current tempo.  Hollywood jumped on the bandwagon to propagandize the electorate into believing that the US was also financially on its last legs in WW II and struggling to muster the resources to continue our march to victory.  Of course, it is implied, that such is the case with Iraq.

This is patently false for both WW II and today's war.  If we are to understand how nation-states have conducted wars in the context of global and regional geo-strategy, including this war, and how certain powerbrokers manipulate perceptions of our national wealth, then the myth of an America on the brink of a financial disaster in WW II must be debunked once and for all.

What was spent

Despite the odd views of post-modern national security theorists on the economic and industrial divergence of fighting wars, the financial well-being of nations at war has real implications on the battlefield.  A state's ability to finance a war directly relates to generating combat power in the form of men, ships, tanks, planes, etc.  In other words, the more materiel, technology, and men a country can produce and field over time, the better the chances of success.

A few references still exist that provide a simple tally* of the money aspects of WW II without prejudice or the burdens of post-modernism.  Simply put, the figures show that the US was a war-making and industrial powerhouse unsurpassed by any of her allies or enemies, and despite huge tax increases and deficit spending, it was far from being driven into poverty in 1945.

Total spending by the allies and neutrals amounted $398 billion.  The major spender was the US, which spent almost 50 percent of the total Allied war budget at $197 billion (this is a little over two trillion USD adjusted for 2005 dollars).  Russia was next at $112 billion (28%), then Great Britain at $65 billion or 16 percent of the total.  Total spending by Axis powers was about $245 billion.  The biggest spender was Germany at $158 billion or 65 percent of Axis expenditures, Italy spent $55 billion (23%), while Japan spent only $33 billion**; only 14 percent of the Axis total.

Tax revenue

There is a simplistic notion on the part of critics who compare our current funding levels to those of WW II that by simply raising taxes, we can devote more revenue to support our military.  What they overlook is that FDR started a military buildup funded by increased tax revenues almost two years prior to the attack on Pearl Harbor.

For example, Congress passed pre-WW II revisions to the tax code to support mobilization of National Guard Divisions for "extended active duty for training," paying for the Selective Service Act, production of war armaments, and pre-war support to allies.  The three revenue acts in 1940 and 1941 increased individual and corporate income tax rates, raised most excise tax rates to 50% to 60%, and reduced personal exemption amounts all the way down to $1,500 for married couples.
 
Yet, as taxes were further increased during the war and deficits climbed - the military buildup caused the deficit in 1941 to nearly double - a positive effect actually occurred:

"... tax changes increased federal receipts from $8.7 billion in 1941 to $45.2 billion in 1945.  Beyond the rates and revenues, however, another aspect about the income tax that changed was the increase in the number of income taxpayers from 4 million in 1939 to 43 million in 1945.

Beginning on May 14, 1945, just a few days after V-E Day, some officials feared the goal of $14 billion would not be reached if Americans believed the surrender of Germany made full subscription unnecessary.  These fears proved unfounded, as the individual sales goal of $7 billion - the highest of any war bond drive - was surpassed by $1.6 billion.  The final tally recorded sales of over $26 billion dollars during the six weeks of the Seventh War Loan drive.

...the President made specific requests for funds, which Congress dealt with through the usual annual appropriations process.  Supplemental defense appropriations for FY1942, as well as regular and supplemental appropriations for FY1943 and later years, were provided in the regular form - that is, as specified dollar amounts for specified accounts.