[Congressional Record (Bound Edition), Volume 160 (2014), Part 1]
[Senate]
[Pages 215-216]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  MILITARY RETIREMENT RESTORATION ACT

  Mr. BLUMENTHAL. Mr. President, I am very proud to follow my colleague 
from New Hampshire and thank her for her leadership in offering the 
Military Retirement Restoration Act, which I am very pleased to support 
as an amendment to the unemployment insurance extension bill.
  For all the reasons I have stated, and others have expressed even 
more powerfully than I, this bill makes sense. We must extend 
unemployment benefits for the long-term jobless. The merits of this 
bill are absolutely indisputable and undeniable. This bill offers a 
critically important opportunity, and we ought to seize it to correct 
and fix a defect in the budget agreement that was reached by the very 
excellent work of our colleague Senator Murray and Congressman Ryan, 
and that was

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passed overwhelmingly by a bipartisan majority in this body.
  It was an agreement that advanced and enhanced economic certainty. It 
had many advantages, but it also was far from perfect. Its flaws 
included a cut in military retiree benefits. These benefits were cut by 
provisions to that agreement that was approved by this body, with many 
reservations and regrets, and now we ought to seize this opportunity to 
correct that defect as this measure offers us through an amendment.
  We can pay for it. It can be budget neutral, if we simply close a 
certain egregious corporate tax loophole as Senator Shaheen has 
suggested. I want to emphasize again what Senator Shaheen said so well. 
We can think of a lot of different ways to pay for the $6.5 billion 
that is necessary to correct these cuts in military retiree benefits. 
What is beyond question is the need to fix this flaw. It is a flaw that 
not only diminishes in monetary terms the benefits these retirees need 
and deserve, it also dishonors the service and sacrifice they have 
made. What better opportunity than now, as we deal with the extension 
of unemployment benefits in a measure that deserves overwhelming 
support just as the budget deal received, to correct this flaw.
  There has been a lot of misinformation and confusion about exactly 
what the Murray-Ryan agreement did to military retirement benefits, and 
there is a need to address in the longer term the system that provides 
for retiree benefits, to make it serve better the interests of our 
retirees, our veterans, our patriots who have given so much to our 
Nation. But right now, in these next few days, beyond any kind of 
question or doubt, is the need to correct this defect and to follow 
through on the understanding that many of us had, including myself, 
that in fact we would correct this defect.
  I supported the budget agreement with the understanding, as Chairman 
Levin of Michigan made clear, the Senate would work this year, as soon 
as possible, to stop the 1-percent reduction in the cost of living 
adjustments for military retirees until the age of 62 that would take 
effect in December of 2015. December, 2015 of that year is a long way 
off. There may be other opportunities to correct this flaw--the 
reduction in retiree benefits--but let's do it now. Let's not delay in 
restoring the benefits that these retirees need and deserve.
  So I urge my colleagues to join in this effort, paying for this 
change by making sure companies managed and controlled in the United 
States can't avoid U.S. taxes simply by claiming foreign status. Many 
of us have long advocated closing this loophole. It seems to me a 
reasonable approach, far better than taking away the child tax credit 
for poor migrant families.
  Ultimately, the pay-for issue, the offset question, should be 
resolved, and I believe it will be, if not in this act then in the 
Omnibus appropriations bill we will address next and then make sure we 
keep faith. We must assure that we will keep faith with these retirees 
who have given and served so much.
  As Senator Shaheen has said, most Americans would agree this kind of 
tax avoidance is unfair, and we ought to close this tax loophole rather 
than reducing military retiree benefits. What all Americans would agree 
with is that we should keep faith and leave no veteran behind, making 
sure this amendment is voted on and approved and given legal force and 
effect so we correct and fix the flaw in the budget agreement that has 
disallowed and dishonored the obligation we owe these retirees.
  I thank the Presiding Officer, and I yield the floor.

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