Page:United States Statutes at Large Volume 83.djvu/290

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PUBLIC LAW 91-128-NOV. 26, 1969

[83 STAT.

SEC. 3. MODIFICATION OF TAX RATES BY EXECUTIVE ORDER. (a) MODIFICATIONS PROVIDING L O W E R R A T E S FOR O R I G I N A L OR N E W

26 vscigii.

78 Stat. 831. 81 Stat. 146.

78 Stat. 810.

I«'SUES.—Section 4911(b)(2)(A) is amended to read as follows: " (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 hio-lier 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 (including achieving a minimum reliance on the tax), he may by Executive order (effective as provided in subparagraph (C) ( i i)) increase or decrease such rates of tax. To the extent specified in such Executive order, the rates applicable to acquisitions of stock or debt obligations which are part of an original or new issue may be lower than the rates applicable to acquisitions of stock or debt obligations which are- not part of an original or new issue. An I^xecutive order which has the effect of establishing lower rates for original or new issues may be applicable to all original or new issues or to any aggregate amount or classification thereof and to acquisitions occurring during such period of time as may be stated therein, and may provide for other limitations and implementing procedures. In determining whether stock or a debt obligation shall be treated as part of an 'original or new issue' for purposes of this subparagraph, the provisions of section 4917(c) shall apply." (b) TECHNICAL AMENDMENT.—Section 4911(b)(2)(C)(i) is amended by striking out "Each increase"" and inserting in lieu thereof ''Subject to the authorization to establish lower rates with respect to acquisitions of stock or debt obligations which are part of an original or new issue, each increase". SEC. 4. OTHER AMENDMENTS. (a)

TRANSFERS TO FOREIGN TRUSTS.—

(1) Section 4912(b)(1) is amended to read as follows: "(1)

CERTAIN TRANSFERS TO FOREIGN TRUSTS.— " (A) EXTENT OF TAX LIABILITY.—Any transfer

(other than in a sale or exchange for full and adequate consideration) of

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