I 

108TH CONGRESS 

2D SESSION H. R. 4825 

To amend the Internal Revenue Code of 1986 to impose an additional tax 

on taxable income attributable to contracts with the United States for 

goods and services for the war in Iraq. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 13, 2004 

Mr. OWENS introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

an additional tax on taxable income attributable to contracts with the United States for goods and services 

for the war in Iraq. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Excess War Profits 

5 Act of 2004’’. 

6 SEC. 2. FINDINGS. 

7 The Congress hereby finds: 
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1 (1) A special tax on the profits of the Nation’s 

2 largest corporations would be in accordance with 

3 previous precedents: World War II and Korea. 

4 (2) While large corporations continue to net bil5 lions of dollars from the War in Iraq, the Bush Ad6 ministration continues to cut funding for vital do7 mestic programs. 

8 (3) Large corporations are using broadly word9 ed contracts to repair Iraq’s petroleum infrastruc10 ture and gain a huge head start over potential com11 petitors in redeveloping the country’s vast, outdated 

12 oil industry. 

13 (4) Five large corporations, Halliburton, Bech14 tel Group, Fluor Corp, Parsons Corp, and the Louis 

15 Berger Group, all benefited from the biggest recon16 struction project since the Second World War. 

17 (5) Since the War in Iraq began, Halliburton 

18 and its subsidiaries have received more than $2 bil19 lion from no bid contracts. 

20 (6) To date, Halliburton has spent only 10 per21 cent of the funds appropriated by the Federal Gov22 ernment to rebuild the Iraqi infrastructure. 
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1 SEC. 3. ADDITIONAL TAX ON PROFITS FROM IRAQ WAR 

2 CONTRACTS. 

3 (a) GENERAL RULE.—Subchapter A of chapter 1 of 

4 the Internal Revenue Code of 1986 (relating to determina5 tion of tax liability) is amended by adding at the end the 

6 following new part: 

7 ‘‘PART VII—ADDITIONAL TAX ON PROFITS FROM 

8 IRAQ WAR CONTRACTS 

‘‘Sec. 59B. Imposition of additional tax. 

9 ‘‘SEC. 59B. IMPOSITION OF ADDITIONAL TAX. 

10 ‘‘(a) GENERAL RULE.—There is hereby imposed (in 

11 addition to any other tax imposed by this chapter) a tax 

12 equal to 15 percent of so much of taxable income as is 

13 attributable to any contract with the United States which 

14 is specifically for the provision of goods or services in con15 nection with the war in Iraq. 

16 ‘‘(b) EXCEPTION FOR UNITED STATES PER17 SONNEL.—The tax imposed by this section shall not apply 

18 to amounts received by any member of the Armed Forces 

19 of the United States or any other employee of the United 

20 States for services as such a member or employee. 

21 ‘‘(c) ADDITIONAL TAX NOT TREATED AS TAX FOR

22 CERTAIN PURPOSES.—The tax imposed by this section 

23 shall not be treated as a tax imposed by this chapter for 

24 purposes of determining— 
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1 ‘‘(1) the amount of any credit allowable under 

2 this chapter, or 

3 ‘‘(2) the amount of the minimum tax imposed 

4 by section 55.’’. 

5 (b) CLERICAL AMENDMENT.—The table of parts for 

6 subchapter A of chapter 1 of such Code is amended by 

7 adding at the end thereof the following new item: 

‘‘Part VII. Additional tax on profits from Iraq war contracts.’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years ending after the 

10 date of the enactment of this Act. 

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