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Warner, Kaine introduce bill to address military retirement benefits issue

U.S. Sens. Mark Warner and Tim Kaine have introduced an amendment to emergency unemployment legislation that would repeal and replace the $6 billion cut to military pensions included in the Bipartisan Budget Act.

congressThe amendment mirrors the Military Retirement Restoration Act introduced by the Senators in December that would replace the reductions in cost-of-living adjustments (COLA) for military retirees with new legislation that could raise as much as $6.6 billion over ten years by preventing companies from avoiding paying U.S. taxes.

“Our service men and women deserve much better than seeing their pensions arbitrarily cut by lawmakers in Washington,” Sen. Warner said. “No American soldier should have to fight for their rightfully-earned benefits. I am proud to introduce this legislation today, and I promise to continue using every tool I can to fight pension cuts that unfairly single out Virginia military families.”

“Military families in Virginia and across the country deserve peace of mind that these unfair COLA cuts will be undone well before they are set to take effect in December 2015,” said Kaine. “That’s why I’m proud to introduce this amendment and will continue to pursue every path to reversing this provision – both legislatively, as well as through my role on the Armed Services Committee.”

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. This amendment would eliminate the tax loophole that allows those corporations to avoid paying their fair share of taxes.

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