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How is this calculated?
The amount the war in Iraq will cost you
is the sum of two figures: War Tax Paid and War Tax Still Owed,
which includes veteran’s health care and disability compensation that are
committed, but not yet paid.
Below are notes and citations for each:
War tax paid
-
It’s a simple ratio comparing your
portion of all taxes to that of the war.
Total budget for Iraq
Total federal income tax revenue*
--------------------------- =
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(Your portion) Your annual federal taxes
| |
Total Budget for Iraq |
Total Federal Income Tax Revenue |
|
2003 |
$53,000,000,000 |
$794,000,000,000 |
|
2004 |
$76,000,000,000 |
$809,000,000,000 |
|
2005 |
$84,500,000,000 |
$927,000,000,000 |
|
2006 |
$101,000,000,000 |
$1,044,000,000,000 |
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Your annual federal taxes are estimated based on the IRS federal tax bracket containing your income level for the year entered. This is simply an estimate and no deductions in taxable income have been incorporated. For a full explanation of how taxes are calculated visit http://www.moneychimp.com/features/tax_brackets.htm. For a more accurate War Tax estimate, chose the "Enter by taxes paid" option and reenter data.
-
Total federal income tax revenue is
sourced from The Congressional Budget Office reports on The Budget and
Economic Outlook, released in January 2004, 2005, 2006 and 2007.
http://www.cbo.gov/showdoc.cfm?index=4985&sequence=5
http://www.cbo.gov/ftpdocs/60xx/doc6060/01-25-BudgetOutlook.pdf
http://www.cbo.gov/ftpdocs/70xx/doc7027/01-26-BudgetOutlook.pdf
http://www.cbo.gov/ftpdocs/77xx/doc7731/01-24-BudgetOutlook.pdf
-
Total budget from Iraq figures for
2003, 2004, 2005 and 2006 are sourced from the Congressional Research
Service. Report titled:
The Cost of Iraq, Afghanistan,
and Other Global
War on Terror Operations Since 9/11
Updated March 14, 2007
Amy Belasco
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division
http://www.fas.org/sgp/crs/natsec/RL33110.pdf
War tax still owed
(Committed but not yet paid).
This figure is based on your current war expense for each year. In
addition to the current spending, there are three related budgetary costs:
-
Future operating costs
-
Veteran’s health care and
disability compensation
-
Net increased defense, reset and
demobilization costs
A report by economists, Linda Bilmes and Joseph E. Stiglitz shows these related budgetary costs to
be 2.0119 times the current spending.*
* The Milken Institute Review, Fourth Quarter,
2006 (pp 76-83). Linda Bilmes and Joseph E. Stiglitz, 1991 Nobel
Prize Winner in Economics
http://www2.gsb.columbia.edu/faculty/jstiglitz/download/2006_Iraq_War_Milken.pdf
Your Iraq war tax does not include:
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