I 
112TH CONGRESS 
1ST SESSION 
H. R. 146 
To amend title 31, United States Code, to provide for the issuance of 
War on Debt Bonds. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 5, 2011 
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. 
Be it enacted by the Senate and House of Representa-
tives 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 
2011’’. 
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: 
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‘‘§ 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 50 years from 
the date of issue. An amount equal to 1/50 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 De-
partment of Commerce); or 
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‘‘(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 cor-
poration, not more than 1 percent of the ownership 
interest of which is held (directly or indirectly) by a 
person who is not a United State 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.’’. 
Æ 
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