Executive Order 11766 Constitutional Neutral (+0.02)

Executive Order 11766—Modifying Rates of Interest Equalization Tax

•

Tuesday, January 29, 1974

•

2 min read (335 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 1974-01-29, 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 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.

▪ 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

Total Words

335

1,995 characters

Estimated Read Time

2 min

@ 200 words / min

Flesch-Kincaid

14.3

Post-Grad reading level

Constitutional Polarity

+0.02

Framers' Alignment index

📜

Scholarly & Legal Citations

Exec. Order No. 11766, Richard Nixon (Jan 29, 1974). Available at https://executiveordersarchive.org/orders/app-executive-order-11766-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. 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.