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Executive Order 11754 Constitutional Neutral (+0.02)

Executive Order 11754—Modifying Rates of Interest Equalization Tax

Richard Nixon Richard Nixon
•
Wednesday, December 26, 1973
•
3 min read (659 words)

Plain-English Translation & Framers' Constitutional Analysis

Early Statesman synthesis distilling legal jargon into practical meaning, statutory anchors, and structural constitutional impacts.

This executive order, signed by President Richard Nixon on 1973-12-26, establishes federal administrative policy concerning "Modifying Rates of Interest Equalization Tax." It outlines operative directives for executive department officers, delegating enforcement responsibilities and establishing official governance guidelines.

Constitutional Assessment: This action represents an orderly exercise of Article II administrative discretion, managing the internal machinery and personnel of the executive branch without abridging the ancient liberties of the people.

Key Directives & Operative Actions

▪ 11464, dated April 3, 1969, is hereby amended to read as follows: "SECTION 1.
▪ The tax imposed by section 4911 of the Internal Revenue Code of 1954 on the acquisition of stock shall be equal to 3.75 percent of the actual value of the stock.
▪ 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 December 31, 1973.

Constitutional & Societal Entities Impacted

🏛️ Merchants, Importers & Commercial Enterprises 🏛️ Foreign Nations & International Entities 🏛️ Financial Institutions & Monetary Authorities
Total Words
659
3,586 characters
Estimated Read Time
3 min
@ 200 words / min
Flesch-Kincaid
8
Post-Grad reading level
Constitutional Polarity
+0.02
Framers' Alignment index
📜

Scholarly & Legal Citations 

Exec. Order No. 11754, Richard Nixon (Dec 26, 1973). Available at https://executiveordersarchive.org/orders/app-executive-order-11754-modifying-rates-interest-equalization-tax.

Official Document Text

Source: The American Presidency Project (UCSB Archive)

Original Source →
WHEREAS, I have determined that the rates of tax prescribed under section 1 of Executive Order No. 11464, dated April 3, 1969, with respect to acquisitions of stocks of foreign issuers and debt obligations of foreign obligors made after April 4, 1969, 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. 11464, dated April 3, 1969, 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 3.75 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 actual value is: "If the period remaining to maturity is: At least 1 year, but less than 1 1/4 years ..... 0.26 percent At least 1 1/4 years, but less than 1 1/2 years ..... 0.33 percent At least 1 1/2 years, but less than 1 3/4 years ..... 0.38 percent At least 1 3/4 years, but less than 2 1/4 years ..... 0.46 percent At least 2 1/4 years, but less than 2 3/4 years ..... 0.58 percent At least 2 3/4 years, but less than 3 1/2 years ..... 0.69 percent At least 3 1/2 years, but less than 4 1/2 years ..... 0.89 percent At least 4 1/2 years, but less than 5 1/2 years ..... 1.09 percent At least 5 1/2 years, but less than 6 1/2 years ..... 1.28 percent At least 6 1/2 years, but less than 7 1/2 years ..... 1.45 percent At least 7 1/2 years, but less than 8 1/2 years ..... 1.63 percent At least 8 1/2 years, but less than 9 1/2 years ..... 1.78 percent At least 9 1/2 years, but less than 10 1/2 years ..... 1.93 percent At least 10 1/2 years, but less than 11 1/2 years ..... 2.08 percent At least 11 1/2 years, but less than 13 1/2 years ..... 2.28 percent At least 13 1/2 years, but less than 16 1/2 years ..... 2.58 percent At least 16 1/2 years, but less than 18 1/2 years ..... 2.84 percent At least 18 1/2 years, but less than 21 1/2 years ..... 3.06 percent At least 21 1/2 years, but less than 23 1/2 years ..... 3.26 percent At least 23 1/2 years, but less than 26 1/2 years ..... 3.44 percent At least 26 1/2 years, but less than 28 1/2 years ..... 3.59 percent 28 1/2 years or more ..... 3.75 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 December 31, 1973, but only if the trade date was after December 31, 1973. 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 December 31, 1973. RICHARD NIXON The White House, December 26, 1973.