interest equalization tax

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Interest equalization tax

Tax on foreign investment by residents of the US which was abolished in 1974.
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Interest Equalization Tax

A 15% tax on interest received from bonds originating outside the United States. Levied in 1963, its original intent was to stimulate dollar investment in American securities. The effect, however, was to stimulate the growth of euromarkets, that is, the growth of investment in dollars outside the jurisdiction of the United States. The interest equalization tax was removed in 1974.
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interest equalization tax

A tax, no longer in effect, that was levied on income received from foreign securities owned by U.S. residents. By discouraging investment in foreign securities, the tax was intended to prevent an outflow of U.S. dollars.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.