[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5157 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5157

 To amend title 31, United States Code, to provide for the issuance of 
                           War on Debt Bonds.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 27, 2010

  Mr. Owens introduced the following bill; which was referred to the 
                      Committee on Ways and Means

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                                 A BILL


 
 To amend title 31, United States Code, to provide for the issuance of 
                           War on Debt Bonds.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``War on Debt Act of 2010''.

SEC. 2. WAR ON DEBT BONDS.

    (a) In General.--Subchapter I of chapter 31 of subtitle III of 
title 31, United States Code, is amended by inserting after section 
3105 the following new section:
``Sec. 3105a. War on Debt Bonds
    ``(a) The Secretary shall establish and administer a new series of 
United States savings bonds, to be known as `War on Debt Bonds'. 
Proceeds from the bonds shall be used first solely to reduce the amount 
of foreign-held public debt, and then to reduce other public debt.
    ``(b) A War on Debt Bond shall not mature, and may not be redeemed 
by the holder, earlier than 30 years from the date of issue. An amount 
equal to \1/30\ of the principal amount of any such bond shall be paid 
to the holder of such bond on the 5th anniversary, and each anniversary 
thereafter, and shall not be includible in gross income under the 
Internal Revenue Code of 1986. Interest shall be paid annually on the 
anniversary date of issuance, and shall not be includible in gross 
income under such Code.
    ``(c) War on Debt Bonds shall be issued at face value and in 
denominations of not less than $10,000, and shall bear interest at a 
rate determined by the Secretary to be equal to 90 percent of the 
interest rate for substantially similar AA rated State bonds, adjusted 
annually.
    ``(d) If during any fiscal year during which any War on Debt Bond 
is outstanding--
            ``(1) the Federal budget deficit for such fiscal year 
        exceeds 3 percent of gross domestic product (as most recently 
        computed and published by the Department of Commerce); or
            ``(2) the public debt exceeds 10 percent of gross domestic 
        product (as so computed and published);
then any such bond may be redeemed without regard to subsection (b).
    ``(e) A War on Debt Bond may only be held by--
            ``(1) a citizen or resident of the United States;
            ``(2) a domestic partnership, or domestic corporation, not 
        more than 1 percent of the ownership interest of which is held 
        (directly or indirectly) by a person who is not a United States 
        person (as defined in section 7701(a)(30) of the Internal 
        Revenue Code of 1986); or
            ``(3) an estate or trust which is a United States person 
        (as so defined), unless there is a beneficiary of the trust who 
        is not a United States person (as so defined).''.
    (b) Clerical Amendment.--The table of sections subchapter I of 
chapter 31 of subtitle III of title 31, United States Code, is amended 
by inserting after section 3105 the following new item:

``3105. War on Debt Bonds.''.
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