Analysis of a Salary-Based Pay System for the Quadrennial Review of Military Compensation

September, 2020
IDA document: D-13204
FFRDC: Systems and Analyses Center
Type: Documents , Human Capital
Division: Cost Analysis and Research Division
Joseph F. Adams, Amy A. Alrich, Claudio C. Biltoc, James M. Bishop, Jerome Bracken, Dave I. Cotting, Norman L. Cotton, Meredith J. Dozier, Dina Eliezer, David R. Graham, R. Abraham Holland, Stanley A. Horowitz, Nancy M. Huff, Nigel J. Mease, Neil V. Mithal, Christopher D. Oswald, Heidi C. Reutter, Jenns A. Robertson, Scott Schutzmeister, Ashlie M. Williams See more authors
This paper supports the goal of the Quadrennial Review of Military Compensation (QRMC) of understanding how a compensation system that combines basic pay, housing, and subsistence allowances into a single taxable “salary” would affect Service members’ earnings and behavior. It also considers the readiness, cost, and tax-revenue implications of such a system.