http://www.mega.nu:8080/ampp/gary_allen_rocker/ch1-4.html "The best way for the Rockefeller-Morgan Insiders to eliminate growing competition was to impose a progressive income tax on their competitors while making sure the law contained built-in escape hatches for themselves. Actually, very few of the proponents of the graduated income tax realized they were playing into the hands of those they were seeking to control. As Ferdinand Lundberg notes in The Rich And The Super rich: What it [the income tax] became, finally, was a siphon gradually inserted into the pocketbooks of the general public. Imposed to popular huzzahs as a class tax, the income tax was gradually turned into a mass tax in a jujitsu turnaround .... The Insiders' principal mouthpiece in the Senate during this period was Nelson Aldrich of Rhode Island, the maternal grandfather of Nelson Aldrich Rockefeller. Lundberg says that "when Aldrich spoke, newsmen understood that although the words were his, the dramatic line was surely approved by 'Big John' [D. Rockefeller] . . . .- In earlier years Aldrich had denounced the income tax as -communist and socialistic,- but in 1909 he pulled a dramatic and stunning reversal. The American Biographical- Dictionary comments: just when the opposition had become formidable he (Aldrich) took the wind out of its sails by bringing forward, with the support of the President (Taft) a proposed amendment to the Constitution empowering Congress to lay income taxes. The escape hatch was ready. By the time the Amendment had been approved by the states, the Rockefeller Foundation was in full operation. The careful orchestration of both parts of the campaign represents one of the most successful financial coups in history. The money the Rockefellers have made by it is incalculable. By exempting themselves from the burden they forced on their competitors, the Rockefellers were able to operate in a world of near laissez-faire capitalism while foisting the weight of more and more socialism on their competitors. It is the equivalent of a sprinter forcing every other runner in a race to carry a sixteen-pound shot. Backing the graduated income tax had another timely advantage for old John. It was about the same time that Judge Kenesaw Landis was ordering the breakup of the Standard Oil monopoly. Wily John D. was able to kill several flying feathered creatures with a single hard object. He not only avoided taxes by creating four great tax exempt foundations; he used them as repositories for his -divested- interests in the various Standard Oil entities. In the switch, Rockefeller had made his assets non-taxable so that they might be passed down through generations without being ravaged by the estate and gift taxes which everyone else had to pay. As Lundberg observed, old John D. planned ahead. Each year the Rockefellers can dump up to half their incomes into their pet foundations and deduct the "donations" from their income tax. Nelson admitted at the confirmation hearings:" . . the foundation pays no capital gains tax and no income tax so those funds can continue to multiply. They not only can, they do. Having the foundations as a tax-free piggy bank is only one of the advantages they provide the family. As Business Week has observed: -"The real motive behind most private foundations is keeping control of wealth. "In the foundation world, where - not for profit- really means not-for- taxation,- one exchanges ownership for control. The Rockefellers have further advantages with their foundations. They can buy, sell or hold real estate, stocks and other securities. Congressman Wright Patman, chairman of the House Banking Committee, has charged that the Rockefellers and other foundations act in concert, using their enormous portfolios to perform maneuvers which used to be known indelicately as -rigging the market.- So powerful have the major foundations become that the Patman Committee concluded: "Unquestionably, the economic life of our Nation has become so intertwined with foundations that unless something is done about it they will hold a dominant position in every phase of American life."