WHEREAS I have determined that the rates of tax prescribed under section 1 of Executive Order No. 11754 of December 26, 1973, with respect to acquisitions of stocks of foreign issuers and debt obligations of foreign obligors made after December 31, 1973, 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 of April 3, 1969, as amended, 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 zero 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 zero percent of the actual value of the debt obligation measured by the period remaining to its maturity." 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 January 29, 1974, but only if the trade date was after January 29, 1974. 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 January 29, 1974. RICHARD NIXON The White House, January 29, 1974.
Executive Order 11766 🏛️✅ Zone 1: Maximum Authority Constitutional Neutral (+0.02)
📜 Art. I §8: Delegated Tariff & Commerce Execution
Executive Order 11766—Modifying Rates of Interest Equalization Tax
Executive Brief • At a Glance
⏱️ 2 min read (335 words) •
● In Effect
🎯 Primary Mandate
Of Executive Order No. 11464 of April 3, 1969, as amended, is hereby amended to read as follows: "Section 1.
⚖️ Constitutional Footing
🏛️✅ Zone 1: Maximum Authority
Express or Implied Congressional Authorization
📜 Art. I §8: Delegated Tariff & Commerce Execution
🏛️ Scope & Affected Sectors
Merchants, Importers & Commercial Enterprises Foreign Nations & International Entities Financial Institutions & Monetary Authorities
Plain-English Translation & Framers' Constitutional Analysis
Early Statesman synthesis distilling legal jargon into practical meaning, statutory anchors, and structural constitutional impacts.
Signed by President Richard Nixon on January 29, 1974, this order concerns Modifying Rates of Interest Equalization Tax. Of Executive Order No. 11464 of April 3, 1969, as amended, 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 zero percent of the actual value of the stock. "(b) Rates applicable to acquisitions of debt obligations.
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
▪
Of Executive Order No. 11464 of April 3, 1969, as amended, 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 zero percent of the actual value of the stock.
▪
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 January 29, 1974, but only if the trade date was after January 29, 1974.
▪
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 January 29, 1974.
Constitutional & Societal Entities Impacted
🏛️ Merchants, Importers & Commercial Enterprises
🏛️ Foreign Nations & International Entities
🏛️ Financial Institutions & Monetary Authorities
Policy Areas & Topics
🏛️
The Framers' Constitutional Council
1787 PrismEvaluating this order against the constitutional debates of 1787 and the limits of Article II executive power.
🏛️✅ Zone 1 (Maximum Authority)
§
"When the President acts pursuant to an express or implied authorization of Congress, his authority is at its maximum, for it includes all that he possesses in his own right plus all that Congress can delegate."
— Justice Robert H. Jackson, Youngstown Sheet & Tube Co. v. Sawyer (1952) Express or Implied Congressional Authorization
JM
James Madison
Separation of Powers & Legislative Primacy
"The constitutional magistracy was designed not to invent policy, but to be the faithful instrument of the laws passed by the people's representatives." — Speech in the First Congress (1789)
Madison would approve the structural posture of this order. The President acts strictly in subordination to statutory authority granted under Article II, Section 3 ("take Care that the Laws be faithfully executed"). The checks and balances hold firm because the policy origin remains with the legislature.
Madisonian Stance: Concurring (Statutory)
AH
Alexander Hamilton
The Energetic Executive & Unified Command
"The direction of war implies the direction of the common strength; and the power of directing and employing the common strength must be under the direction of the single hand of the Executive." — Federalist No. 74 (1788)
Hamilton would forcefully champion executive discretion here. For foreign entanglements, commerce defense, and national security, deliberative assemblies are too slow and faction-ridden. A unified, energetic Executive exercising swift command is precisely what the Philadelphia Convention intended for national preservation.
Hamiltonian Stance: Supportive of Execution
GM
George Mason
Bill of Rights, Due Process & 10th Amendment
"The president will be surrounded by flatterers and sycophants... and the great powers of the executive will gradually absorb the liberties of the people." — Cato IV (Anti-Federalist, 1787)
The Anti-Federalist prism advises continuous democratic vigilance. Even routine administrative directives aggregate centralized federal power away from town halls and state assemblies toward a distant executive apparatus.
Anti-Federalist Stance: Eternal Vigilance Required
📐
Five Measurable "Constitutional Friction" Dimensions
An objective audit measuring potential separation-of-powers tension against the United States Constitution and established Supreme Court doctrine.
⚖️ Discretionary Twilight Zone
31 / 100 friction index
Dimension 1 • Art. I, §1 & §8
Moderate Friction
Legislative Encroachment & Purse
Administers commerce or fiscal programs requiring ongoing statutory delegation and legislative oversight.
Benchmark: Power of the purse, taxes/tariffs, and rule of law reserved to Congress.
Dimension 2 • Art. II, §1 & §3
Low Friction
Executive Scope & Faithfulness
Exercises standard supervisory executive authority to faithfully execute existing statutes.
Benchmark: Faithfully execute laws enacted by Congress vs. unilateral decree.
Dimension 3 • 10th Amendment
Moderate Friction
Federalism & State Sovereignty
Engages state and local partners in cooperative federalism programs.
Benchmark: Police powers and un-delegated responsibilities reserved to the States.
Dimension 4 • 5th & 14th Amendments
Low Friction
Due Process & Individual Rights
Focuses on internal governmental operations with no direct impairment of private rights or property.
Benchmark: Protection of private property, contracts, liberty, and procedural justice.
Dimension 5 • Separation of Powers
Low Friction
Youngstown Jacksonian Tier
The President operates strictly as the constitutional Chief Executive, carrying out policy established by Congress with strong statutory backing.
Benchmark: Express or Implied Congressional Authorization
⚖️
Audit Synthesis
This order operates within Justice Jackson’s Zone of Twilight, resting upon concurrent presidential authority or congressional silence.
Weighted composite: Art. I (25%), Art. II (25%), Federalism (15%), Due Process (15%), Youngstown (20%).
ℹ️
How to read these dimensions: Executive power expands whenever an administration acts without explicit statutory authorization from Congress (Article I), touches upon police powers historically reserved to the states (Tenth Amendment), or limits private rights and property without judicial process. A low friction score indicates strict concordance with enacted law; a high friction score highlights orders testing the limits of presidential discretion.
Total Words
335
1,995 characters
Estimated Read Time
2 min
@ 200 words / min
Flesch-Kincaid
14.3
College Level
Text size:
Related Executive Orders
2 orders cited directly in this text, plus related actions from this administration.
EO 11754 Dec 26, 1973
🏛️✅ Zone 1 (Maximum Authority) Constitutional Neutral
Executive Order 11754—Modifying Rates of Interest Equalization Tax
📜 Art. I §8: Delegated Tariff & Commerce Execution
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.
Richard Nixon Grade 8 • 3m
EO 11464 Apr 3, 1969
🏛️✅ Zone 1 (Maximum Authority) Constitutional Neutral
Executive Order 11464—Modifying Rates of Interest Equalization Tax
📜 Art. I §8: Delegated Tariff & Commerce Execution
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.
Richard Nixon Grade 8 • 3m
EO 11765 Jan 21, 1974
⚖️✨ Zone 2 (Zone of Twilight) Constitutional Neutral
Executive Order 11765—Sale of Vessels of the Navy
📜 Art. II §2: Commander-in-Chief Supervisory Authority
Vessels of the Navy stricken from the Naval Vessel Register pursuant to section 7304 of title 10 of the United States Code, and not subject to disposition under other law, may be sold at public sale to the highest acceptable bidder, regardless of their appraised value, after…
Richard Nixon Post-Graduate Legal • 2m
EO 11764 Jan 21, 1974
⚖️✨ Zone 2 (Zone of Twilight) Constitutional Neutral
Executive Order 11764—Nondiscrimination in Federally Assisted Programs
📜 Art. II §1: Executive Discretion & Internal Operations
The Attorney General shall coordinate enforcement by Federal departments and agencies of Title VI of the Civil Rights Act of 1964. He shall prescribe standards and procedures regarding implementation of title VI and shall assist the departments and agencies in accomplishing…
Richard Nixon College Level • 2m
EO 11763 Jan 17, 1974
🏛️✅ Zone 1 (Maximum Authority) Fidelity (+0.44)
Executive Order 11763—Establishing a National Commission for the Observance of World Population Year
📜 5th Amend: Regulatory Execution with Due Process
In a message to the Congress on 'July 18, 1969, I stated that "One of the most serious challenges to human destiny in the last third of this century will be the growth of the population.
Richard Nixon College Level • 4m
EO 11762 Jan 17, 1974
🏛️✅ Zone 1 (Maximum Authority) Constitutional Neutral
Executive Order 11762—Delegating to the Administrator of Veterans' Affairs Certain Authority Relating to Grants-in-Aid to the Republic of the Philippines for Medical Care and Treatment of Veterans
📜 10th Amend: Intergovernmental Federalism Cooperation
Subject to the provisions of subsections (b) and (c) of this section, the Administrator of Veterans' Affairs is hereby designated and empowered to exercise, without the approval, ratification, or other action of the President, the authority vested in the President by sections…
Richard Nixon Post-Graduate Legal • 1m
📜
Scholarly & Legal Citations
Exec. Order No. 11,766 (Jan. 29, 1974), https://executiveordersarchive.org/orders/app-executive-order-11766-modifying-rates-interest-equalization-tax.
