Memory of Tom Jeffers

[Dealey Joe]

Post you memories of Tom here. I don't like living in the past but Tom has a special place in our hearts.

[Bob]

We all definitely miss Tom, who would have been 56 years old in couple of days, if memory serves me correct. Tom had a lot of great takes, but the one to me that was the most informative was this one...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'I guess one can understand why Big Oil wanted JFK gone after reading that. Anyway, miss you Tom! See you in the next life.

[Dealey Joe]

My favorite memory of Tom is when we were having a discussion about JFK's alleged sex life Tom commented something like this:I don't mind my president having a little extra sex life, I want him to be loose and relaxed so he can do his job well.

[Bob]

Talk about surreal...I still have Tom on my friend's list on Facebook. The other day (October 18th), FB reminded me of Tom's birthday again.Happy Birthday Tom...we miss you!

[bob franklin]

It must be great finally knowing.