But my dream of ranching in Wyoming with my family was almost shattered by one thing — the Death Tax .
From the President
Mark Eisele
HOW THE DEATH TAX ALMOST KILLED MY RANCH
My path in the cattle industry looks different from many . Growing up , I always knew I wanted to be a rancher . My family had a ranch in Wyoming , but there was limited opportunity to take on that operation and I knew that if I truly wanted this life , I would need to build a ranch of my own .
As a teenager , I baled hay and worked on local ranches , and eventually I became a hired hand at the historic King Ranch in Cheyenne , Wyoming . The King Ranch in Cheyenne was established in 1911 as a sheep operation but transitioned to cattle in the 1960s . I loved the ranch , I loved working with the cattle , and I could think of no better way to make a living than by being a rancher .
As an employee , I grew close with the owners Ann and Jerry King . The Kings had no heir to pass the ranch on to , and I think they appreciated how excited I was to make a living in the cattle business . Eventually , I became a partner in the King Ranch with the ultimate goal of owning the ranch outright .
But my dream of ranching in Wyoming with my family was almost shattered by one thing — the Death Tax . Just seven days into 2011 , Mrs . King passed away . Once the funeral arrangements were finished , I heard from lawyers that if I wanted to keep the ranch going , I had to cut a check to the federal government to pay the Death Tax . The Death Tax , also known as the federal estate tax , is the government taxing your possessions that pass on to another person . It ’ s a cold , cruel tax that hits at a moment of immense family tragedy .
At the time , we were operating under what I describe as a siege mentality . The King Ranch had survived so many challenges . We survived even as the “ cattle free by ‘ 93 ” campaign raged across the West to end livestock grazing on public lands by the year 1993 . We survived wildfires , harsh winters , drought and everything else nature threw at us . We worked through numerous threats from the Endangered
But my dream of ranching in Wyoming with my family was almost shattered by one thing — the Death Tax .
Species Act . I did not want the ranch to close up under my watch in order to pay a tax bill or because of other government regulations . I knew I needed to be proactive so , in the early ‘ 90s , I started contacting experts in a variety of areas to make sure the ranch was in as good of a position as possible .
After Mrs . Kings ’ passing , because I was a non-blood heir , the Death Tax burden I was facing was potentially 50 %. Think about that for a moment and imagine a tax bill for half of the value of your farm or ranch . That should be terrifying , and it certainly was for me . Thankfully , because of the estate planning work I did 10 years prior with tax professionals , accountants and even former IRS agents , I was able to find ways to reduce my tax burden . Their work cost us more than $ 30,000 at the time and that bill cut deep into our bottom line , but it was so much cheaper than paying more than half of the ranch . When all was said and done , the Death Tax we ended up paying was around 15 %.
As I travel the country , I hear similar stories from other cattle producers about how their farming and ranching dreams were almost cut short by tax bills from the IRS . My personal experience with the Death Tax is exactly why I am so fired up to fight against tax increases in every form . I am proud of the ranching legacy I built with my family , and I never want to see another producer forced to sell off cattle , turn their land over to developers , or exit the cattle industry for good because of a tax bill .
NCBA is fighting to defend our farming and ranching legacy . The current Death Tax exemptions sunset at the end of 2025 , but a solution is needed sooner rather than later . I often ask , “ How many times does a family have to pay for a farm or ranch before they actually own it ”. That ’ s why we ’ ll keep the fight going on our end so you can keep doing what you love : running your farm or ranch , caring for your family , and producing a highquality protein that consumers demand . www . NCBA . org NATIONAL CATTLEMEN 5