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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1909 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1909

 To amend title 31, United States Code, to provide for the issuance of 
                        Buy Back America Bonds.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 18, 2011

   Mr. Enzi introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend title 31, United States Code, to provide for the issuance of 
                        Buy Back America Bonds.

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

SECTION 1. BUY BACK AMERICA 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. Buy Back America Bonds
    ``(a) The Secretary shall establish and administer a new series of 
United States savings bonds, to be known as `Buy Back America 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 Buy Back America Bond shall be subject to such terms and 
conditions of issue, conversion, redemption, and maturation as the 
Secretary may prescribe, except that a Buy Back America Bond shall not 
mature, and may not be redeemed by the holder, earlier than 10 years 
from the date of issue and shall mature not more than 20 years from the 
date of issue. Interest on a Buy Back America Bond whenever paid shall 
not be includible in gross income under the Internal Revenue Code of 
1986.
    ``(c) Buy Back America Bonds shall be issued at face value and in 
denominations of not less than $25.
    ``(d) The redemption value of a Buy Back America Bond shall be 
determined as the Secretary shall provide--
            ``(1) at a fixed interest rate equal to the rate applicable 
        to a Series I savings bond for the rate period during which the 
        Buy Back America Bond is purchased, and
            ``(2) for purposes of calculating yearly interest, by 
        increasing the purchase price of such Buy Back America Bond in 
        each calendar year after the year of purchase by an amount 
        equal to--
                    ``(A) such purchase price, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) of the Internal Revenue Code of 
                1986 for such calendar year, determined by substituting 
                the calendar year in which such bond was purchased for 
                `1992' in subparagraph (B) thereof.
    ``(e) If during any fiscal year during which any Buy Back America 
Bond is outstanding--
            ``(1) the Federal budget deficit for such fiscal year is 
        less than the amount equal to 3 percent of gross domestic 
        product (as most recently computed and published by the 
        Department of Commerce); and
            ``(2) the public debt is less than the amount equal to 10 
        percent of gross domestic product (as so computed and 
        published);
then any such bond may be redeemed without regard to subsection (b).
    ``(f) A Buy Back America 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),
and may be purchased only by an individual who provides a valid social 
security account number (not including a taxpayer identification number 
provided by the Internal Revenue Service).
    ``(g) A Buy Back America Bond may be transferred as provided by the 
Secretary, but only to an individual who has a valid social security 
account number (not including a taxpayer identification number provided 
by the Internal Revenue Service).''.
    (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. Buy Back America Bonds.''.

SEC. 2. DEFICIT REDUCTION.

    (a) Calculation.--The Office of Management and Budget shall 
calculate the net deficit reduction resulting from the implementation 
of this Act and the sale of Buy Back America Bonds for the period 
beginning on the date of the sale of the first such Buy Back America 
Bond and ending on the date that is 1 year after such date.
    (b) Adjustment of the Discretionary Caps.--Effective on the 
effective date of this Act, the limit for the appropriate discretionary 
budget category set forth in section 251(c) and 251A of the Balanced 
Budget and Emergency Deficit Control Act of 1985 for the first fiscal 
year beginning after the date that is 1 year after the date of the sale 
of the first Buy Back America Bond shall be reduced by the amount of 
the net deficit reduction calculated pursuant to subsection (a).
                                 <all>
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