LETTER TO WILLIAM J. CASEY FROM TIMOTHY A. HANAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87M01152R000100060002-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: May 6, 2010
• Sequence Number: 2
• Publication Date: November 25, 1985
• Content Type: LETTER

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5. Legislation
Office of Legislative Liaison
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Mobil Oil Corporation
November 25, 1985
The Honorable William J. Casey
Director of Central Intelligence
Central Intelligence Agency
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20505
Dear Mr. Casey:
85- 4695
1100 CONNECTICUT AVENUE, N.W.
WASHINGTON, D.C. 20036
SUITE 620
Enclosed please find a copy of a press release issued this date by
Rawleigh Warner, Jr., Chief Executive Officer, Mobil Oil Corporation,
expressing strenuous opposition to the House Ways and Means Committee
proposal to reform the Internal Revenue Code.
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? CONTACT: JOHN LORD
[phone]
Mobil news release
MOBIL OIL CORPORATION
160 EAST 42ND STREET
NEW YORK, NEW YORK 10017
TELEPHONE: [phone]
MOBIL CHAIRMAN HITS TAX CHANGES;
SAYS "REFORM" CRIPPLES NEEDED INVESTMENT
NEW YORK, Nov. 25 -- "The House Ways and Means committee
proposal to increase business taxes by $138 billion in the next
five years would place an intolerable and potentially crippling
burden on American business," Rawleigh Warner Jr., chairman
of the Mobil Corporation, said today.
"It is ?specially'disturbing," Mr. Warner said, "that
the committee has voted to repeal the investment tax credit and
to stretch out the time over which businesses may recover the
cost of.their assets and to-penalize companies competing in
international commerce. - Theis-- changes -take us right back to the
era of the 1970s, when American productivity and the ability of
America to compete in world markets were at their lowest. It is
inconceivable that anybody would want to return to those days --
days of inflation, unemployment, and recession. Today's
protectionist fervor is the result of the policies of those years."
Mr. Warner said that the 1981 tax bill, which encouraged
capital formation for investment, helped spark the dramatic
economic recovery that has ensued. "But now," he said, "the Ways
and.Means Committee seems intent on stripping American business of
its ability to meet foreign competition and continue to grow at home.
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- 2 -
. "Even the lower rates that were originally offered to make
tax 'reforsa' palatable to the business community are proving a
chimera," the Mobil chairman said. "There have been so many
deals struck in the name of compromise that the:: rates will now
have to be higher than anticipated in order to make the new tax.
law 'revenue-neutral'.
"It's a strange sort of neutrality and a strange sort of
reform to create a bill with such a decided bias against
American business. By increasing business taxes by $138
billion the-government will be denying business money that could
go into upgrading and bolstering American companies so they can
more effectively meet foreign competition, create jobs for
American workers and narrow the huge trade deficits America
is currently accruing.
Instead, this money would be- used. to - subsidize --consumer
spending: Ironically, it is likely that foreign producers will
be the beneficiaries of this largesse. American industry could
well lack the capital to compete with overseas companies for the
new consumer demand. xo one knows how many jobs would be lost
because of this lost investment.
Mr. Warner also noted that by focusing so much attention
and energy on this tax bill, the Congress appears to have been
diverted from dealing with the nation's number one domestic
problem the deficit.
11/25/85
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