Today, Congressman Bill Owens introduced H.R. 5157, the War on Debt Act. The legislation enacts a specific blueprint to force Washington to get serious about reducing the national debt and eliminate American dependence on foreign creditors.
"This legislation will map out an exact plan to end the culture of reckless spending we have seen out of Washington for most of the past decade," said Owens. "Any successful business owner will agree that you must budget your expenses based on how much money you are taking in. It is time Congress takes a cue from the working families of Upstate New York and learns to live within its means."
The War on Debt act attacks overblown federal spending on two fronts. First, it creates a type of savings bond that funnels money exclusively to pay down the national debt, particularly debt that is held by foreign entities. The legislation also sets spending limits in place for the federal government -- 3% of the GDP for the annual deficit and 10% of the nation's three-year average GDP for the national debt. These limits would ensure a top rating on the money borrowed and make certain that the federal government makes good on repaying the bonds. Americans can buy the bonds knowing that they will be used to pay down the national debt, and get the benefit of a unique bond that has no state or federal taxes levied on the interest.
"With our debt approaching $13 trillion, it is well past time to put our fiscal house in order," Owens said. "As I travel around our community, I hear from countless Upstate New Yorkers who are concerned about the effect our national debt, especially debt owed to foreign nations, has on our economic and national security. As we reduce the trillions of dollars we owe to countries like China and Japan, we will increase our negotiating strength in global markets."
The bill specifically states that the revenue generated from purchase of these "War on Debt" bonds will be required to repay our national debt, taking interest payments on existing debt out of the hands of foreign countries and into the wallets of the American people.
The introduction of H.R. 5157 is the latest in a series of efforts by Congressman Owens to create jobs, spur economic development in Upstate New York, and reduce the federal debt. In his first few months in office, Owens has introduced job creation bills such as the Rural Jobs Tax Credit Act and worked to rein in federal spending by supporting PAYGO legislation and voting twice against raising the federal debt ceiling. He has also worked to cut taxes for small businesses and family farms by supporting an increase in federal estate tax exemption from $3 million to $5 million.
Earlier this month, Owens introduced H.R. 5085, to expand tax breaks for small business owners who create full-time jobs. More information about Congressman Owens' agenda of federal debt reduction can be found at http://owens.house.gov.