In 1963, President John Kennedy imposed the Interest Equalization Tax (IET) on U.S. purchases of foreign securities. The IET was designed to

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The Interest Equalization Tax (IET) was imposed to increase the cost of foreign borrowing in the U.S. bond market. This tax was intended to reduce the outflow of U.S. dollars to foreign countries and encourage domestic investment by making foreign investments less attractive. The tax was intended to balance out the interest rates between u.s. investments and offshore investments.

In 1963, President John Kennedy Imposed the Interest Equalization Tax