Congressman's first action is to reintroduce legislation to pay down national debt
Congressman Bill Owens (D-NY) today was sworn in for his first full term as a member of the 112th Congress. After taking the oath of office, Owens continued his work to restore fiscal responsibility to Washington by reintroducing his legislation, The War on Debt Act of 2011. Owens previously introduced the bill in April of last year.
"I consider it a great privilege to have the opportunity to serve New York's 23rd Congressional District," said Owens. There is still plenty of work to do to help create jobs and get the economy moving again. My "War on Debt' lays out a specific blueprint for reining in debts owed to foreign nations and putting that money -- which is exempt from taxes - back in the pockets of average Americans. I have said before that this is not the only way to solve our debt crisis, but it is my hope that this legislation begins a serious conversation that will help Congress chart a path to fiscal responsibility."
The "War on Debt Act" addresses the national debt on two fronts. First, it creates a type of savings bond whose revenue is dedicated exclusively to paying down the national debt, beginning with debt that is held by foreign entities. Second, it 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 -- ensuring that Washington can never use the bonds as a means to support reckless spending. Americans could buy the bonds knowing they will be used to pay down the national debt, and get the benefit of a tax-free investment that will yield benefits for many years.
"Just as small businesses across the country have to balance their books and working families have live within their means, Congress must learn better stewardship of taxpayer dollars," continued Owens. "With the debt now exceeding $14 trillion, it is well past time to put our fiscal house in order. As we reduce the trillions of dollars we owe to countries like China and Japan, we will increase our negotiating position in global markets."
The bill specifically states that the revenue generated from purchase of these "War on Debt" bonds will be dedicated to repaying the national debt, taking interest payments on existing debt out of the hands of foreign countries and putting them into the wallets of the American people.