Cost of the Iraq War so far: $1.3 trillion

WASHINGTON - The economic cost of the war in Iraq is estimated to total $1.3 trillion — roughly double the amount the White House has requested thus far, according to a new report by Democrats on Congress' Joint Economic Committee.

For the Iraq war, total economic costs were estimated at $1.3 trillion for the period from 2002 to 2008. That would cost a family of four $16,500, the report said.

The report, released Tuesday, attempted to put a price tag on the conflict, including "hidden" costs such as interest payments on the money borrowed to pay for the wars, lost investment, the expense of long-term health care for injured veterans and the cost of oil market disruptions.

Future economic costs would be even greater. The report estimated that the Iraq war would cost $3.1 trillion between 2003 and 2017. Under that scenario, it would cost a family of four $46,400, the report said.

The report, from the committee's Democratic majority, was not vetted with Republican members. Democratic leaders in Congress, including Senate Majority Leader Harry Reid, D-Nev., seized on the report to criticize Bush's war strategy.

The report comes as the House and Senate planned to vote this week on another effort by Democrats to set a deadline for withdrawing troops from Iraq as a condition for providing another $50 billion for the war.

Reid said the report "is another reminder of how President Bush's stubborn refusal to change course in Iraq and congressional Republicans' willingness to rubber stamp his failed strategy — has real consequences at home for all Americans."

Israel Klein, spokesman for the Joint Economic Committee, took issue with the White House's characterization of the panel's report.

"Instead of dealing with the substance of this report, the White House is once again trying to deflect attention away from the blistering costs of this war in Iraq," Klein said. "This report uses the nonpartisan CBO (Congressional Budget Office) budget estimates and was prepared by the JEC's professional economists using the same process this committee has always used, regardless of which party is in the majority."

Oil prices have surged since the start of the war, from about $37 a barrel to well over $90 a barrel in recent weeks, the report said. "Consistent disruptions from the war have affected oil prices," although the Iraq war is not responsible for all of the increase in oil prices, the report said.

Still, the report estimated that high oil prices have hit U.S. consumers in the pocket, transferring "approximately $124 billion from U.S. oil consumers to foreign (oil) producers" from 2003 to 2008, the report said.

High oil prices can slow overall economic growth if that chills spending and investment by consumers and businesses. At the same time, high oil prices can spread inflation throughout the economy if companies decide to boost the prices of many other goods and services.

Meanwhile, "the sum of interest paid on Iraq-related debt from 2003 to 2017 will total over $550 billion," the report said. The government has to make interest payments on the money it borrows to finance the national debt, which recently hit $9 trillion for the first time.

"What this report makes crystal clear," said Joint Economic Committee Chairman Sen. Chuck Schumer, D-N.Y., "is that the cost to our country in lives lost and dollars spent is tragically unacceptable." Rep. Carolyn Maloney, D-N.Y., the panel's vice chair, said of the Iraq war: "By every measure, this war has cost Americans far too much."