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Any military demotion would have to be accomplished through an administrative disciplinary action or a courts martial. These are under the purview of the command the individual is attached to. The unit commanding officer or his designee could perform these actions, and as for rank, a commanding officer could be almost any officer rank, depending on the type of unit. This, of course, is only in the case of a E-5 or E-6. An E-7 or higher would require a brigade level or higher Courts Marshall.

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Q: What higher rank can demote a sergeant?
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A full bird colonel


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