The White House commissioned the Quadrennial Review of Military Compensation to evaluate pay of Pentagon personnel.
Thomas Bush, study director, told writer Amanda Palleschi they found the current tax code favors high-ranking officers through combat zone tax exclusion benefits.
Junior personnel go on more dangerous missions yet many of them do not receive the exclusion benefits, according to the report.
The QRMC recommends each military service have its own process to determine incentives for military and civilian personnel.
Hostile fire pay should go up and the Pentagon should also conduct an annual review of what a combat zone is.