I 
109TH CONGRESS 
2D SESSION 
H. R. 4853 
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 
MARCH 2, 2006 
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 con-
tracts with the United States for goods and services 
for the war in Iraq. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Excess War Profits 
Act of 2006’’. 
SEC. 2. FINDINGS. 
The Congress hereby finds: 
VerDate Aug 31 2005 
23:47 Mar 04, 2006
Jkt 049196
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4853.IH
H4853
ccoleman on PROD1PC71 with BILLS
(1) A special tax on the profits of the Nation’s 
largest corporations would be in accordance with 
previous precedents: World War II and Korea. 
(2) While large corporations continue to net bil-
lions of dollars from the War in Iraq, the Bush Ad-
ministration continues to cut funding for vital do-
mestic programs. 
(3) Large corporations are using broadly word-
ed contracts to repair Iraq’s petroleum infrastruc-
ture and gain a huge head start over potential com-
petitors in redeveloping the country’s vast, outdated 
oil industry. 
(4) Five large corporations, Halliburton, Bech-
tel Group, Fluor Corp, Parsons Corp, and the Louis 
Berger Group, all benefited from the biggest recon-
struction project since the Second World War. 
(5) Since the War in Iraq began, Halliburton 
and its subsidiaries have received more than $2 bil-
lion from no bid contracts. 
(6) To date, Halliburton has spent only 10 per-
cent of the funds appropriated by the Federal Gov-
ernment to rebuild the Iraqi infrastructure. 
VerDate Aug 31 2005 
23:47 Mar 04, 2006
Jkt 049196
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4853.IH
H4853
ccoleman on PROD1PC71 with BILLS
SEC. 3. ADDITIONAL TAX ON PROFITS FROM IRAQ WAR 
CONTRACTS. 
(a) GENERAL RULE.—Subchapter A of chapter 1 of 
the Internal Revenue Code of 1986 (relating to determina-
tion of tax liability) is amended by adding at the end the 
following new part: 
‘‘PART VIII—ADDITIONAL TAX ON PROFITS FROM 
IRAQ WAR CONTRACTS 
‘‘Sec. 59B. Imposition of additional tax. 
‘‘SEC. 59B. IMPOSITION OF ADDITIONAL TAX. 
‘‘(a) GENERAL RULE.—There is hereby imposed (in 
addition to any other tax imposed by this chapter) a tax 
equal to 15 percent of so much of taxable income as is 
attributable to any contract with the United States which 
is specifically for the provision of goods or services in con-
nection with the war in Iraq. 
‘‘(b) EXCEPTION
FOR
UNITED
STATES
PER-
SONNEL.—The tax imposed by this section shall not apply 
to amounts received by any member of the Armed Forces 
of the United States or any other employee of the United 
States for services as such a member or employee. 
‘‘(c) ADDITIONAL TAX NOT TREATED AS TAX FOR 
CERTAIN PURPOSES.—The tax imposed by this section 
shall not be treated as a tax imposed by this chapter for 
purposes of determining— 
VerDate Aug 31 2005 
23:47 Mar 04, 2006
Jkt 049196
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4853.IH
H4853
ccoleman on PROD1PC71 with BILLS
‘‘(1) the amount of any credit allowable under 
this chapter, or 
‘‘(2) the amount of the minimum tax imposed 
by section 55.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 1 of such Code is amended by 
adding at the end thereof the following new item: 
‘‘PART VIII. ADDITIONAL TAX ON PROFITS FROM IRAQ WAR CONTRACTS.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
VerDate Aug 31 2005 
23:47 Mar 04, 2006
Jkt 049196
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H4853.IH
H4853
ccoleman on PROD1PC71 with BILLS