oct 16, 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.
Description:
According to Jane Wolfe, the author of The Murchisons: The Rise and Fall of a Texas Dynasty (1989), Murchison's relationship with Lyndon B. Johnson came to an end when he accepted the offer to be the running-mate of John F. Kennedy: "Many of Texas's richest oilmen had supported Johnson for years with large contributions, but when he accepted the vice presidency under Kennedy, they felt betrayed. Johnson had enormous clout in the Senate, and much of this power was due to these Texas oilmen. During the fifties LBJ breakfasts at Clint's Preston Road home were commonplace. The Texas senator and ten or twelve of the state's richest oilmen would gather for coffee on the front porch, while Johnson gave an overview of what might happen in Congress affecting the oil industry and of the coming election. Johnson would announce which senators needed money and just how much they needed to defeat their opponents. Then Clint Murchison would assign the fund-raising job to one of the men gathered at the breakfast... In return, Johnson was expected to deliver the vote on the depletion allowance, and all other legislation of interest of the oilman."
During the 1960 presidential election 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.
After the assassination of Kennedy, President Lyndon B. Johnson dropped the government plans to remove the oil depletion allowance. Richard Nixon followed his example and it was not until the arrival of Jimmy Carter that the oil depletion allowance was removed.
Added to timeline:
Covert History
Details on history that were left out. The goal is not to ch...
Date:
