WASHINGTON - Sen. Jeff Merkley, D-Ore., on Wednesday cosponsored the Military Retirement Restoration Act to safeguard military retirees from changes to cost of living adjustments included in the bipartisan budget agreement the Senate passed Wednesday.
The bill would replace the estimated $6 billion in expected savings from military retiree cost of living adjustments with an estimated $6.6 billion raised by eliminating a tax loophole for offshore corporations.
"I was disturbed that the budget deal changed the COLA for retiring military personnel," Merkley said. "This bill will fix that, restoring the full COLA for service members, while cutting a government subsidy for corporations who ship jobs overseas.
"We should be supporting our men and women who serve overseas, not companies that ship jobs overseas."
Currently, companies that are incorporated offshore but managed and controlled from the United States can claim foreign status that helps them avoid paying U.S. taxes.