Executive Order 11464—Modifying Rates of Interest Equalization Tax

WHEREAS, I have determined that the rates of tax prescribed under section 1 of Executive Order No. 11368, dated August 28, 1967, with respect to acquisitions of stocks of foreign issuers and debt obligations of foreign obligors made after August 29, 1967, are higher than the rates of tax necessary to limit the acquisitions by United States persons of stocks of foreign issuers and debt obligations of foreign obligors within a range consistent with the balance-of-payments objectives of the United States; Now, THEREFORE, by virtue of the authority vested in me by section 4911(b) (2) of the Internal Revenue Code of 1954, and as President of the United States, it is hereby ordered as follows: SECTION 1. Section 1 of Executive Order No. 11368, dated August 28, 1967, is hereby amended to read as follows: "SECTION 1. Rates of Tax. "(a) Rates applicable to acquisitions of stock. The tax imposed by section 4911 of the Internal Revenue Code of 1954 on the acquisition of stock shall be equal to 11.25 percent of the actual value of the stock. "(b) Rates applicable to acquisitions of debt obligations. The tax imposed by section 4911 of the Internal Revenue Code of 1954 on the acquisition of a debt obligation shall be equal to a percentage of the actual value of the debt obligation measured by the period remaining to its maturity and determined in accordance with the following table: The tax, as a percentage of If the period remaining to maturity is: actual value, is: At least 1 year, but less than 1 1/4 years 0.79 percent At least 1 1/4 years, but less than 1 1/2 years 0.98 percent At least 1 1/2 years, but less than 1 3/4 years 1.13 percent At least 1 3/4 years, but less than 2 1/4 years 1.39 percent At least 2 1/4 years, but less than 2 3/4 years 1.73 percent At least 2 3/4 years, but less than 3 1/2 years 2.06 percent At least 3 1/4 years, but less than 4 1/2 years 2.66 percent At least 4 1/2 years, but less than 5 1/2 years 3.26 percent At least 5 1/2 years, but less than 6 1/2 years 3.83 percent At least 6 1/2 years, but less than 7 1/2 years 4.35 percent At least 7 1/2 years, but less than 8 1/2 years 4.88 percent At least 8 1/2 years, but less than 9 1/2 years 5.33 percent At least 9 1/2 years, but less than 10 1/2 years 5.78 percent At least 10 1/4 years, but less than 11 1/2 years 6.23 percent At least 11 1/2 years, but less than 13 1/2 years 6.83 percent At least 13 1/2 years, but less than 16 1/2 years 7.73 percent At least 16 1/2 years, but less than 18 1/2 years 8.51 percent At least 18 1/2 years, but less than 21 1/2 years 9.19 percent At least 21 1/2 years, but less than 23 1/2 years 9.79 percent At least 23 1/2 years, but less than 26 1/2 years 10.31 percent At least 26 1/2 years, but less than 28 1/2 years 10.76 percent 28 1/2 years or more 11.25 percent SEC. 2. With respect to acquisitions of stock of foreign issuers and debt obligations of foreign obligors made under the rules of a national securities exchange registered with the Securities and Exchange Commission or under the rules of the National Association of Securities Dealers, Inc., this order shall be effective for acquisitions made after April 4, 1969, but only if the trade-date was after April 4, 1969. In the case of other acquisitions of stock of foreign issuers and debt obligations of foreign obligors, this order shall be effective for acquisitions made after April 4, 1969. RICHARD NIXON The White House April 3, 1969