According to the National Priorities Project, the War in Iraq has now cost American taxpayers $500 billion. That stands in stark contrast to the $100 billion to $200 billion pricetag estimated by President Bush’s chief economic advisor in September 2002 or the $50 billion to 60$ billion estimate offered by the White House Office of Management and Budget Director in December 2002.
The National Priorities Project explains how it calculates the cost of the war:
The Cost of Iraq War calculator was set to reach $456 billion September 30, 2007, the end of fiscal year 2007. As of October 1, 2007, it is ticking at the same rate, though Congress has not yet appropriated money for fiscal year 2008. The Cost of Iraq War calculator is occasionally reset based on new information and new allocations of funding and will be re-set depending on the decisions made by Congress.
The numbers include military and non-military spending, such as reconstruction. Spending only includes incremental costs, additional funds that are expended due to the war. For example, soldiers’ regular pay is not included, but combat pay is included. Potential future costs, such as future medical care for soldiers and veterans wounded in the war, are not included. It is also not clear whether the current funding will cover all military wear and tear. It also does not account for the Iraq War being deficit-financed and that taxpayers will need to make additional interest payments on the national debt due to those deficits.
The media (and others) sometimes cite a figure that is in excess of our estimate. However, the number cited by the media may include not just the Iraq War, but the Afghanistan War and for enhanced security abroad. Our figure is only covering the cost of the Iraq War as it relates to the U.S. federal budget (and does not include costs to others or other countries or any economic impact costs to Americans).This number is based on an analysis of the legislation in which Congress has allocated money for war so far and research by the Congressional Research Service (latest report) which has access to Department of Defense financial reports.
To get a better grasp on exactly how much this war is costing American taxpayers, consider this: at the current rate of spending, the war in Iraq is costing approximately:
$100 billion per year
$8.5 billion per month
$280 million per day
$11.7 million per hour
NOTE: This post was cross-posted at The Coming Realignment.
Birthplace: San Diego, CA
Birthdate: That’s for me to know
Political Party: Independent
Political Philosophy: Libertarian-liberal