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Military Retirement Restoration Act preserves benefits, closes corporate tax loophole

(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) today introduced the Military Retirement Restoration Act to safeguard military retirees from changes to cost of living adjustments (COLA) that were included in the bipartisan budget agreement the Senate is expected to clear this week.  Shaheen’s legislation would replace the estimated $6 billion in expected savings from military retiree COLA with an estimated $6.6 billion raised by eliminating a tax loophole for offshore corporations.  Shaheen’s legislation is co-sponsored by Senators Jack Reed (D-RI), Brian Schatz (D-HI), Mark Warner (D-VA), Tom Udall (D-NM), Al Franken (D-MN), Mazie Hirono (D-HI), Bernie Sanders (I-VT), Richard Blumenthal (D-CT), Jeff Merkley (D-OR), Elizabeth Warren (D-MA), Tim Kaine (D-VA), Angus King (I-ME), Mark Begich (D-AK), Mark Udall (D-CO), and Amy Klobuchar (D-MN).

“We ought to replace the cost of living adjustment reductions for military retirees in the budget deal and the plan I’m introducing is a common-sense way to do it,” Shaheen said. 

“The bipartisan budget agreement will help create economic certainty for small businesses, promote job creation and avoid a government shutdown but it’s not perfect.  Moving forward, we should all be open to practical changes like the one I’m introducing today.”

Currently, companies that are incorporated offshore but managed and controlled from the United States can claim foreign status which helps them avoid paying U.S. taxes.

As a member of the Senate Armed Services Committee and Senate Foreign Relations Committee, Shaheen has been a strong advocate for our nation’s veterans.  Shaheen is a cosponsor of the Retired Pay Restoration Act of 2013, the VOW to Hire Heroes Act, and last year worked to protect veterans’ health care programs from across the board budget cuts.  She has also co-sponsored legislation that would require the U.S. Department of Veterans Affairs (VA) to provide for a full-service VA hospital for veterans in New Hampshire.