The Congressional Budget Office noted that cash compensation for military personnel consists of basic pay, allowances for things like housing and food, special pays and bonuses, and the tax advantages that military members receive because some allowances are not subject to federal income tax.[Footnote 11] During the period from 2000 through 2004, Congress authorized increases in the pays and allowances to active duty military personnel.

[11] Congressional Budget Office, Military Compensation: Balancing Cash and Noncash Benefits (Washington, D.C.: Jan. 16, 2004).

Last reviewed October 2024