Paging Tom

[Bob]

Tom, if you wouldn't mind, a year or so ago you had an excellent post about how JFK's proposed changes might have affected big oil financially. Would you mind posting that again? Thanks.

[tom jeffers]

The biggest change was that JFK was pushing for the oil depletion allowance to drop from 30 percent to 15 percent. now this doesn't sound like much but i will explain.Texas oil millionaires also fought hard to get the oil depletion allowance. It was first introduced in 1913 and allowed producers to use the depletion allowed to deduct just 5 per cent of their income and the deduction was limited to the original cost of their property. However, in 1926 the depletion allowance was increased to 27.5 per cent. As Robert Bryce pointed out in his book, Cronies: Oil, the Bushes, and the Rise of Texas, America's Superstate: "Numerous studies showed that the oilmen were getting a tax break that was unprecedented in American business. While other businessmen had to pay taxes on their income regardless of what they sold, the oilmen got special treatment."Bryce gives an example in his book how the oil depreciation allowance works. "An oilman drills a well that costs $100,000. He finds a reservoir containing $10,000,000 worth of oil. The well produces $1 million worth of oil per year for ten years. In the very first year, thanks to the depletion allowance, the oilman could deduct 27.5 per cent, or $275,000, of that $1 million in income from his taxable income. Thus, in just one year, he's deducted nearly three times his initial investment. But the depletion allowance continues to pay off. For each of the next nine years, he gets to continue taking the $275,000 depletion deduction. By the end of the tenth year, the oilman has deducted $2.75 million from his taxable income, even though his initial investment was only $100,000."Such a system was clearly unfair and only benefited a small group of businessmen in Texas. It seemed only a matter of time before Congress removed this tax loophole. However, these oilmen used some of their great wealth to manipulate the politicians in Washington. During the 1960 presidential election John F. Kennedy gave his support for the oil depletion allowance. In October, 1960, he said that he appreciated "the value and importance of the oil-depletion allowance. I realize its purpose and value... The oil-depletion allowance has served us well." However, two years later, Kennedy decided to take on the oil industry. On 16th October, 1962, Kennedy was able to persuade Congress to pass an act that removed the distinction between repatriated profits and profits reinvested abroad. While this law applied to industry as a whole, it especially affected the oil companies. It was estimated that as a result of this legislation, wealthy oilmen saw a fall in their earnings on foreign investment from 30 per cent to 15 per cent.On 17th January, 1963, President Kennedy presented his proposals for tax reform. This included relieving the tax burdens of low-income and elderly citizens. Kennedy also claimed he wanted to remove special privileges and loopholes. He even said he wanted to do away with the oil depletion allowance. It is estimated that the proposed removal of the oil depletion allowance would result in a loss of around $300 million a year to Texas oilmen. Namaste'

[Bob]

Thanks Tom...EXCELLENT presentation. So one can see that big oil had a big reason to see JFK go away. So did big banking with the changes JFK was going to make concerning the Federal Reserve. So did the CIA, as JFK was in the process of breaking it into 1,000 pieces, after he had already fired Allen Dulles as director. The CIA also wanted the Vietnam war, as did all the war profiteers. So did the anti-castro Cubans that were still angry about the Bay of Pigs episode, even though that plan was actually hatched by Dulles and Richard Nixon during the latter stages of the Eisenhower administration. So did the mob that were upset about the treatment they were getting from RFK, especially after they had helped in the 1960 election in Illinois after an agreement with Joe Kennedy. So a LOT of groups were upset about JFK, and what he was trying to do. There is one name that is connected to ALL of these groups. The name is Bu$h. The Bu$h family was connected to big oil, big banking and Wall Street, the CIA, war profiteering, the Cubans and the Bay of Pigs episode, not to mention Group 40, and the mob during that same period. People say I harp on the Bu$h family too much...but just connect the dots.

[Frenchy]

Bob have you ever saw the documentary "JFK 2" ?

[Bob]

Oh yes Frenchy. Again before I came upon this site, I was like a lot of people, I thought the Bu$h family was just a political and patriotic family. I had never had really heard of Prescott Bu$h or Samuel Bu$h. Then I also learned about Poppy's behavior in the early 60's with the CIA. So I started doing my own research. It has led me to my current conclusions. By the way, just in case some people think that my motives are purley political, I have also determined that Poppy Bu$h and Bill Clinton became an alliance during the events in Mena, Arkansas while Bill was Governor of Arkansas and while Poppy was in the White House. These events were not caused by political affiliations like which party one belongs to, but rather it's ALL about money and power. The more the better with these people.

[Nerrilyn Diefenbach]

BobYou've alluded to this Bush/Clinton alliance before and it intrigues me. So what are your feelings about Hilary being S of SNerrilyn

[Bob]

Hi Nerrilyn, I'm not too thrilled about it. Hillary really showed a dark side during her Presidential campaign that was almost Karl Rove-like with her gutter tactics. During the debates with Barack, the only HUGE difference between the two of them was in foreign policy. Hillary voted for the Iraq war. Hillary talked about going after Iran. She sounded almost like John McCain in terms of her "tough" talk. So to me, it makes NO sense to make her Secretary of State with the differences that they have had in the past regarding foreign policy. But also this happened, when it was clear that Obama would win the nomination, both of them met secretly at the annual Bilderbergers meeting in Virginia. That made me cringe. Both are also CFR members. I know Obama will be better than Bu$h, ANYBODY would be. But the Hillary selection as S of S and other factors are looking dubious.

[Bob]

Here is more on the Clinton-Bu$h connection by Russ Baker...http://realnews.org/index.php-option=co ... id=189.htm