Page:United States Statutes at Large Volume 81.djvu/180

 146

PUBLIC LAW 90-59-JULY 31, 1967 "(2)

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STAT.

MODIFICATION or TAX BATES BY EXECUTIVE ORDER.—

" (A) IN GENERAL.—If the President of the United States determines that the rates of tax imposed by paragraph (1), or provided in any prior Executive order issued pursuant to this paragraph, are lower or higher than the rates of tax necessary to limit the total acquisitions by United States persons of stock of foreign issuers and debt obligations of foreign obligors within a range consistent with the balanceof-payments objectives of the United States, he may by Executive order (effective as provided in subparagraph (C) (ii)) increase or decrease such rates of tax. " (B) MAXIMUM RATE.—No increase in the rates of tax which is prescribed in an Executive order issued under subparagraph (A) shall— " (i) cause the rate applicable to the acquisition of stock to be higher than 22.5 percent, or "(ii) cause the rates applicable to the acquisition of debt obligations to be higher than the rates set forth in column 11(B) of the table in paragraph (1)(B) of this subsection. "(C)

Post, p. 147.

APPLICATION or EXECUTIVE ORDERS.—

" (i) Each increase and each decrease in the rates of tax which is prescribed in an Executive order issued under subparagraph (A) shall provide for the same proportionate increase or decrease in each rate of tax, except that any such rate may be rounded to the nearest 0.01 percent. " (ii) Any Executive order issued under subparagraph (A) shall apply with respect to acquisitions made after the date on which such order is issued (or, if later, after the 29th day following the date of the enactment of this paragraph); except that in the case of any such order which increases the rates of tax (as in effect without regard to such order), to the extent specified in such order, rules similar to the rules prescribed by paragraphs (2), (3), and (4) of section 3(c) of the Interest Equalization Tax Extension Act of 1967 shall apply. " (iii) If, by reason of an Executive order issued under subparagraph (A), the rates of tax in effect on the date of an acquisition described in paragraph (2) or (4) of section 3(c) of the Interest Equalization Tax Extension Act of 1967 are lower than the rates of tax in effect on January 25, 1967, the applicable rate of tax prescribed in such Executive order shall apply to such acquisition. "(3) RATES DURING INTERIM PERIOD.—In the case of acquisitions of stock and debt obligations made after January 25, 1967, and before the thirtieth day after the date of the enactment of this paragraph, the tax imposed by subsection (a) shall be 22,5 percent in the case of acquisition of stock, and shall be determined under column 11(B) (rather than column II (A)) of the table in paragraph (1)(B) in the case of acquisition of a debt obligation. "(4) REGULATIONS.—The Secretary or his delegate may prescribe such regulations (not inconsistent with the provisions of this section or of any Executive order issued and in effect under this section) as may be necessary to carry out the provisions of this section."

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