Sen. Franken Backs Measure to Replace Military Pension Cuts
Franken Will Support Budget Agreement, Fight to Replace Military Pension Cuts by Closing Loopholes that Allow Corporations to Avoid U.S. Taxes
Ahead of today's vote on the budget agreement, U.S. Sen. Al Franken (D-Minn.) joined 15 of his colleagues in introducing legislation that would replace cuts to military pensions by closing a corporate tax loophole.
Sen. Franken will vote to pass the budget bill in order to prevent another costly government shutdown, but believes strongly that Congress should work quickly to avoid cuts to military pensions, which don't go into effect until December 2015.
"There are ways to reduce the deficit by making commonsense reductions to defense spending, but cutting military pensions isn't one of them," said Sen. Franken. "That's why I'm supporting this effort to replace cuts to military pensions by closing an indefensible and wasteful corporate tax loophole. Before this pension cut takes place two years from now, I will fight to restore this unwise cut to our veterans' pensions."
The bipartisan budget agreement currently before the Senate makes approximately $6 billion in cuts to military pensions by reducing the cost-of-living adjustment for some future retirees, a concession made to Republican negotiators in order to secure an agreement. The Military Retirement Restoration Act would replace those cuts, scheduled to take effect in approximately two years, by closing a loophole in the tax code that allows companies managed and controlled in the United States to incorporate overseas in order to avoid paying U.S. taxes on their foreign income, raising approximately $6.6 billion over ten years. Sen. Amy Klobuchar (D-Minn.) is also a cosponsor of the bill.