I 

111TH CONGRESS 

2D SESSION H. R. 5157 

To amend title 31, United States Code, to provide for the issuance of 

War on Debt Bonds. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 27, 2010 

Mr. OWENS introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend title 31, United States Code, to provide for the 

issuance of War on Debt Bonds. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘War on Debt Act of 

5 2010’’. 

6 SEC. 2. WAR ON DEBT BONDS. 

7 (a) IN GENERAL.—Subchapter I of chapter 31 of 

8 subtitle III of title 31, United States Code, is amended 

9 by inserting after section 3105 the following new section: 


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1 ‘‘§ 3105a. War on Debt Bonds 

2 ‘‘(a) The Secretary shall establish and administer a 

3 new series of United States savings bonds, to be known 

4 as ‘War on Debt Bonds’. Proceeds from the bonds shall 

5 be used first solely to reduce the amount of foreign-held 

6 public debt, and then to reduce other public debt. 

7 ‘‘(b) A War on Debt Bond shall not mature, and may 

8 not be redeemed by the holder, earlier than 30 years from 

the date of issue. An amount equal to 1 9 ⁄30 of the principal 

10 amount of any such bond shall be paid to the holder of 

11 such bond on the 5th anniversary, and each anniversary 

12 thereafter, and shall not be includible in gross income 

13 under the Internal Revenue Code of 1986. Interest shall 

14 be paid annually on the anniversary date of issuance, and 

15 shall not be includible in gross income under such Code. 

16 ‘‘(c) War on Debt Bonds shall be issued at face value 

17 and in denominations of not less than $10,000, and shall 

18 bear interest at a rate determined by the Secretary to be 

19 equal to 90 percent of the interest rate for substantially 

20 similar AA rated State bonds, adjusted annually. 

21 ‘‘(d) If during any fiscal year during which any War 

22 on Debt Bond is outstanding— 

23 ‘‘(1) the Federal budget deficit for such fiscal 

24 year exceeds 3 percent of gross domestic product (as 

25 most recently computed and published by the De26 partment of Commerce); or 


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1 ‘‘(2) the public debt exceeds 10 percent of gross 

2 domestic product (as so computed and published); 

3 then any such bond may be redeemed without regard to 

4 subsection (b). 

5 ‘‘(e) A War on Debt Bond may only be held by— 

6 ‘‘(1) a citizen or resident of the United States; 

7 ‘‘(2) a domestic partnership, or domestic cor8 poration, not more than 1 percent of the ownership 

9 interest of which is held (directly or indirectly) by a 

10 person who is not a United States person (as de11 fined in section 7701(a)(30) of the Internal Revenue 

12 Code of 1986); or 

13 ‘‘(3) an estate or trust which is a United States 

14 person (as so defined), unless there is a beneficiary 

15 of the trust who is not a United States person (as 

16 so defined).’’. 

17 (b) CLERICAL AMENDMENT.—The table of sections 

18 subchapter I of chapter 31 of subtitle III of title 31, 

19 United States Code, is amended by inserting after section 

20 3105 the following new item: 

‘‘3105. War on Debt Bonds.’’. 

Æ 


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