Lujan Grisham Cosponsors Legislation to Undo Military Retiree Benefit Cuts
Press Release
WASHINGTON, DC -- U.S. Rep. Michelle Lujan Grisham (NM-01) has cosponsored the Military Retirement Restoration Act, legislation introduced today that would repeal cuts to military retiree cost-of-living adjustments (COLAs) included in the Bipartisan Budget Act. This legislation will be fully paid for by closing tax loopholes for offshore corporations. Companion legislation has been introduced in the Senate by U.S. Sen. Jeanne Shaheen (D-NH) and U.S. Sen. Mark R. Warner (D-VA).
"While the Bipartisan Budget Act will create stability and certainty for New Mexico families and businesses, as I said last week, it's far from perfect," Rep. Lujan Grisham said. "New Mexico's veterans and military families have made great sacrifices for our nation, but the Bipartisan Budget Act asks them to sacrifice even further through unfair cuts to military pension COLAs. This legislation, which I am proud to cosponsor, will ensure that military retirees get the benefits they've earned after years of dedicated service to our country."
The Military Retirement Restoration Act would replace the cuts to military retiree benefits included in the Bipartisan Budget Act by preventing companies from avoiding U.S. taxes by abusing overseas tax havens. Specifically the bill:
Repeals the provision in the Bipartisan Budget Act (Section 403) that modifies the annual cost-of-living adjustment for working-age military retirees by making the adjustments equal to inflation minus one percent. This provision, which is scheduled to go into effect in December 2015, would result in a benefit cut for working-age military retirees. At age 62, the retired pay would be adjusted as if the COLA had been the full Consumer Price Index (CPI) adjustment in all previous years, and the service members would receive the full COLA from then on. The provision would have saved approximately $6 billion over ten years.
Prevents companies from avoiding paying their fair share of U.S. taxes. The repeal of Section 403 would be fully offset by stopping companies incorporated offshore but managed and controlled from the United States from claiming foreign status and avoiding U.S. taxes on their foreign income. It would require these companies to be treated as U.S. domestic corporations for tax purposes. This provision is expected to raise over $6.6 billion over ten years.
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