Jeb the Idiot. - Page 6 - PeachParts Mercedes-Benz Forum

koop · #76 11-03-2005, 03:32 PM

Big Oil needed Bush’s help. Two of the industry’s sacred cows were in danger. One was a 27.5 percent tax depletion allowance, which dated back to 1926. The allowance benefited the oil industry by removing much of the financial risk investors faced when they invested in oil ventures, which required substantial start-up capital investment. Drillers argued that the risks of hitting a dry spot would be prohibitively high for most investors and national oil production would suffer if the allowance were repealed.

The other major national oil policy of the time was a system of high quotas put in place to protect domestic oil companies from cheaper foreign oil. Removing the quotas, the oil industry argued, could produce a national security threat and would risk domestic oil production. It would pose a direct threat to their profits earned through domestic drilling ventures, too.

In the late 1960s, a spirited band of liberals in Congress were eager for reform, and the inequalities of the tax code were major targets. The oil industry found itself on the defensive as the reformers targeted the oil depletion allowance as a government “giveaway” for Big Oil. Today, it would be called corporate welfare.

For the coming fight over oil policy, newly sworn in President Nixon appointed a Cabinet-level task force headed by Labor Secretary George Schulz to examine the issue in early 1969 and find compromises to present to Capitol Hill.

While Big Oil had many friends in Congress eager to defend their interests, Congressman Bush could be counted on as one of their most loyal supporters. He argued against reducing the allowance and strongly opposed changing the quota system. [See Parmet’s George Bush.]

By 1969, however, the reformers were gaining momentum. It was becoming clear that compromise would have to be reached. The Nixon Administration Task Force proposed a reduction of the 27.5 percent tax allowance to 20 percent. With that as a starting point, the debate moved to Congress, where the oil industry’s allies were able to increase the proposed allowance to 22 percent. The bill passed 394-30, with Bush voting for passage.

boneheaddoctor · #77 11-03-2005, 03:32 PM

Quote:

Originally Posted by koop

When John F. Kennedy became President in 1961, the oil industry felt secure. But President Kennedy then began to assault the power of the oil giants directly, first with a law known as the Kennedy Act, and later by attacking the oil depletion allowance. The Kennedy Act, passed on October 16, 1962, removed the distinction between repatriated profits and profits reinvested abroad. Both were now subject to US taxation. The measure also was aimed at preventing taxable income from being hidden away in foreign subsidiaries and other tax havens. While this law applied to industry as a whole, it particularly affected the oil companies, which were greatly diversified with large overseas operations.
By the end of 1962, oilmen estimated their earnings on foreign investment capital would fall to 15 percent, compared with 30 percent in 1955.

One of the most sacred of provisions in the eyes of oilmen was the oil depletion allowance, which permitted oil producers to treat up to 27.5 percent of their income as tax exempt. In theory this was to compensate for the depletion of fixed oil reserves but, in effect, it gave the oil industry a lower tax rate. Under this allowance, an oilman with a good deal of venture capital could become rich with virtually no risk. For example, a speculator could drill ten wells. If nine were dry holes and only the tenth struck oil, he would still make money because of tax breaks and the depletion allowance.

It was estimated that oilmen might lose nearly $300 million a year if the depletion allowance was diminished.

Attempts to eliminate or reduce the depletion allowance were rebuffed year after year by congressmen, many of whom were happy recipients of oil-industry contributions.

Speaking of his tax reform act of 1963, President Kennedy pointed the finger at the oil companies, saying: "… no one industry should be permitted to obtain an undue tax advantage over all others."

Included in Kennedy’s tax package were provisions for closing a number of corporate tax loopholes, including the depletion allowance. Needless to say, oilmen both in Texas and elsewhere felt threatened by Kennedy and his policies. Kennedy’s use of his personal power against the steel manufacturers had shown them that the young President meant the enforce his will in these matters.

(Jim Marrs, Crossfire, pp. 276-277)

he gave them the allowance......yet where is the outrage from the left?

had it been a republican we would still be hearing about it....

koop · #78 11-03-2005, 03:39 PM

Quote:

Originally Posted by boneheaddoctor

he gave them the allowance......yet where is the outrage from the left?

had it been a republican we would still be hearing about it....

did you even read the quotes? He was trying to cut the allowance which had existed since 1926.

Why do I bother.

Austin85 · #79 11-03-2005, 03:45 PM

Can we move on now?...

But what about the actual LEGISLATION that you're saying Jeb should have approved? You really think that, in a time of record-shattering profits for oil companies, the taxpayers should be buying generators for them?!?!

OK Nevermind.
After reading the times article Medmech put up, I would agree that Stations should definetly foot their own bill....(Gotta wonder if there are mom and pop 's out there that couldn't afford it though....and end up on the short end...)

So AA is a flip-flopper!!!!!!
Trust me I have no empathy for people who were on line the day after the Hurricane. They should have been gassed up before the power went out....
I run on UCO; The oil companies can "stick it" as far as I'm concerned....

..but "Mr President ; the country is under attack."
Not even an "Oh *****." out of him????
What's up with that?

boneheaddoctor · #80 11-03-2005, 03:46 PM

Quote:

Originally Posted by koop

did you even read the quotes? He was trying to cut the allowance which had existed since 1926.

Why do I bother.

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."

http://www.spartacus.schoolnet.co.uk/JFKoildepletion.htm

koop · #81 11-03-2005, 03:53 PM

Lets not leave out the rest of the article

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.

boneheaddoctor · #82 11-03-2005, 04:06 PM

So what handout has Bush given the oil business that can be proven....

I have proven the democratic beholding to the oil companies...

koop · #83 11-03-2005, 04:13 PM

No, you lied.

Quote:

Originally Posted by boneheaddoctor

These lefties need to do a google on "Oil Depletion allowance" a major handout to the oil companies....and it was done by their hero....John Fitzgerald Kennedy when he was president. THe largest Oil Company handout ever was created by the Democrats. Not the Bushes...

boneheaddoctor · #84 11-03-2005, 04:16 PM

Quote:

Originally Posted by koop

No, you lied.

no....I just proved the hypocracy of the Bush bashers...

BrierS · #85 11-03-2005, 07:01 PM

When someone, Democrat or Republican, is elected why is it the elected gets blamed for something perceived as wrong, when the blame should fall squarely on the shoulders of those electing him/her into office?

MTI · #86 11-03-2005, 07:02 PM

Quote:

Originally Posted by boneheaddoctor

So what handout has Bush given the oil business that can be proven....

There was this thing recently . . . something called the Energy Bill with approximately $20B in incentives and subsidies? Corporate welfare at it's finest. Considering that energy companies are suffering from embarassing (literally) record profits . . . isn't it like giving Steve Case, Bill Gates, or Warren Buffett food stamps?

The benefits include the ability to write off some of the costs of exploring for oil -- a provision that will cost taxpayers $974 million over two years -- as well as another $406 million in tax write-offs to expand refineries. Industry officials say the tax incentives are needed to look for oil in places where it may be hard to reach or of uncertain quantity, but critics, including some free-market Republicans, say the oil industry should be putting its own, record-high profits into finding more energy sources.

Azimyth · #87 11-03-2005, 07:18 PM

Quote:

Originally Posted by narwhal

Wow, this thread went six pages (been gone)? Refreshing to see some of you other guys who didn't vote for Bush (like me) point out how similar this type of "Bush Sux" commentary is to a sixth grade yelling match.

I've been wondering when it would go critical, "My dad can beat-up your dad!"

boneheaddoctor · #88 11-03-2005, 07:31 PM

Quote:

Originally Posted by Azimyth

I've been wondering when it would go critical, "My dad can beat-up your dad!"

And they still preffer to ignore the fact that Democrats presided over the vast majority of the oil depletion allowance giveaway for the oil companies making them the biggest oil company suckups in history....THey did this for decades before Bush was even born.

Botnst · #89 11-03-2005, 08:41 PM

Quote:

Originally Posted by Azimyth

I've been wondering when it would go critical, "My dad can beat-up your dad!"

Gosh, now that Koop and Boner have got this this childish spat cranked to utter ridiculousness, I feel deprived of my usual soapbox and turgid prose.

Oh-oh-oh, I've got it! Let's have a Bush-Kennedy family feud!

Azimyth · #90 11-03-2005, 08:55 PM

Quote:

Originally Posted by Botnst

Gosh, now that Koop and Boner have got this this childish spat cranked to utter ridiculousness, I feel deprived of my usual soapbox and turgid prose.

Oh-oh-oh, I've got it! Let's have a Bush-Kennedy family feud!

I wonder on which side Arnold would fight......

Dub would take Ted Kennedy with his eyes closed (unless they were in a body of water eastward on Martha's Vineyard)