The United States Enacts the Interest Equalization Tax
At a glance:
- Series: Great Events from History II: Business and Commerce Series
- Categories: Government and Politics, Economics
- Subcategories: Business
- Curriculum: American History 1951-present
- Geographical Location: Washington, D.C.
- Date: September 2, 1964
Article abstract: The United States Congress passed the Interest Equalization Tax, closing U.S. capital markets to foreign borrowing in response to a balance of payments deficit.
Summary of Event
President Lyndon B. Johnson signed the Interest Equalization Tax into law on September 2, 1964. This legislation was a response to a continuous deficit in the Official Reserve Transactions Account of the United States’ balance of payments and to a drain on U.S. gold reserves. The Official Reserve Transactions Account was a summary account used at the time to...
[The entire page is 2397 words long]
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