Inouye: Reform Social Security and close loopholes

HONOLULU (AP) — Senior U.S. Senate Democrat Daniel Inouye said Monday he's "doing everything possible" to convince lawmakers to raise money along with spending cuts as part of a long-term national debt control plan, including changes in Social Security benefits and closing tax loopholes.

Inouye, the 86-year-old president pro tempore of the U.S. Senate, said he wants to protect retirement benefits for most existing workers, but people just entering the work force today wouldn't miss Social Security benefits as much.

"You don't have to cut away anything that, say, someone who is retiring today or 20 years from now will be receiving," Inouye said from his office in Honolulu. "But someone who is just starting to get into the Social Security cycle, and he won't be receiving any benefits for the next 50 years, he won't know."

Inouye, speaking to news reporters after arriving home from Washington on Sunday, didn't specify what kind of entitlement reform he'd seek.

But he made clear that changes in benefits shouldn't harm people who are counting on government support after retirement.

"I know how it is for someone not to have that type of resources available. It's not fair," Inouye said.

Tax policy should be overhauled to eliminate loopholes enjoyed by the wealthy and giant business, such as General Electric, that avoided paying federal taxes last year, he said.

He said he's trying to ensure that revenue increases are considered in addition to spending cuts by a 12-member committee tasked with recommending debt reductions worth $1.5 trillion. Inouye said he asked Senate Majority Leader Harry Reid, D-Nevada, not to name him to the committee because of his workload as chairman of the Senate Appropriations Committee.

"I am doing everything possible to convince my colleagues on the committee to include revenue sources — not necessarily raising taxes — but closing loopholes," Inouye said.

Tax breaks on yachts, oil companies and corporate jetliners could be ended, raising billions of dollars for the government, he said.

The national crisis that recently ended when Democrats and Republicans agreed to reduce government spending and raise the debt ceiling was just the "first step" in a series of reforms needed, he said.

"There's enough blame for everyone," Inouye said. "We should be big enough to say, 'We're all in it. Let's face it.'"

Separately, Inouye said a significant number of troops may be moved from Okinawa, Japan to Hawaii instead of to Guam as had been previously planned.

Current plans call for 8,000 Marines and their 9,000 dependents to transfer from Okinawa to Guam. Inouye didn't say how many could arrive in Hawaii instead.

"I'm not giving out any secrets. Decisions are being made as to how many here and how many there," Inouye said. "One of the places located would be Hawaii, but not a big amount. A significant but not a big amount."