A Maritime Lawyer, Percentage Depletion, and the JCT

152 Tax Notes 1695 (2016)

12 Pages Posted: 28 May 2016 Last revised: 3 Mar 2017

See all articles by George K. Yin

George K. Yin

University of Virginia School of Law

Date Written: September 19, 2016


This year marks the 90th anniversary of both the percentage depletion allowance and the Joint Committee on Taxation. This essay relates the curious tale of Norman Beecher, a New York maritime lawyer with little background in energy, natural resources, or tax, who convinced Congress in 1918 to adopt a tax proposal that helped lead to both of these important features of the tax system eight years later. While Beecher’s idea ended up providing a major tax break for the oil and gas industry, this essay presents evidence that the source of the proposal was Beecher himself, and not the industry, as a result of his misunderstanding of the proposal’s tax effect. Since the conditions especially favorable to enactment of the proposal were very short-lived, this essay offers the intriguing possibility that but for Beecher (or his misunderstanding), the tax system might never have included percentage depletion or, conceivably, the Joint Committee.

Keywords: percentage depletion, Joint Committee on Taxation, discovery depletion, oil and gas, prospector, wildcatter

JEL Classification: B10, B15, B20, B25, H20, H25, K34, N42, N72

Suggested Citation

Yin, George K., A Maritime Lawyer, Percentage Depletion, and the JCT (September 19, 2016). 152 Tax Notes 1695 (2016), Available at SSRN: https://ssrn.com/abstract=2783982 or http://dx.doi.org/10.2139/ssrn.2783982

George K. Yin (Contact Author)

University of Virginia School of Law ( email )

580 Massie Road
Charlottesville, VA 22903
United States
434-924-7025 (Phone)
434-924-7536 (Fax)

Do you want regular updates from SSRN on Twitter?

Paper statistics

Abstract Views
PlumX Metrics