Rep. Denny Heck has signed on to legislation that reinstates the upcoming cut to military retirement cost-of-living adjustments (COLAs). The cut is part of the bipartisan budget agreement passed by Congress this month, though it will not take effect until December 2015.
“I voted for the Bipartisan Budget Act for two reasons: it ends the threat of government shutdowns, and it provides needed relief from sequestration cuts which have impacted our service members, military families, veterans and civilian workers,” Heck stated.
“However, as I said last week, the budget agreement was not perfect. One provision I particularly dislike is the change to military retirement COLAs. The Military Retirement Restoration Act will reverse this cut and make up for the lost spending reduction by closing tax loopholes.
The thousands of veterans living in the South Sound deserve to get the retirement benefits they’ve earned.”
The bill specifically restricts companies that are 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, raising an expected $6.6 billion over ten years. This would offset the cut to military retirement COLAs, which would have reduced spending by approximately $6 billion over ten years.