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Saturday, November 17, 2012

Ranchers, Farmers Brace For 'Death Tax' Impact

Rancher Kevin Kester works dawn to dusk, drives a 12-year-old pick-up truck and earns less than a typical bureaucrat in Washington D.C., yet the federal government considers him rich enough to pay the estate tax -- also known as the "death tax."

And with that tax set to soar at the beginning of 2013 without some kind of intervention from Congress, farmers and ranchers like Kester are waiting anxiously.  

"There is no way financially my kids can pay what the IRS is going to demand from them nine months after death and keep this ranch intact for their generation and future generations," said Kester, of the Bear Valley Ranch in Central California.

Two decades ago, Kester paid the IRS $2 million when he inherited a 22,000-acre cattle ranch from his grandfather. Come January, the tax burden on his children will be more than $13 million.

For supporters of a high estate tax, which is imposed on somebody's estate after death, Kester is the kind of person they rarely mention. He doesn't own a mansion. He's not the CEO of a multi-national. But because of his line of work, he owns a lot of property that would be subject to a lot of tax.


Publishers Notes: I strongly encourage you to read the rest of this article.


Anonymous said...

Gotta pay that 47% that sit home and collect.

Anonymous said...

I hope everyone reads the last sentence in the article as it should really 'strike a cord' to any native american. While our nation is racing full force towards full implementation of Socialism other - even Communist nations - are going opposite direction.

Here is what the last sentence says;

'Ironically, many nations historically more concerned with class and wealth -- namely Russia and China -- have since abandoned their estate taxes.'

Anonymous said...

Obama's ideology stems from his own dyfuntional upbring which caused jealously and manifested itself into a hatred of anyone who has the proverbial pot to take a leak in. So he doesn't want anyone to have anything. He was born of a sleazeball mother who pawned him off on grandparents (sound familiar?) If it weren't for him being a minority he would never have gotten into schools on his academic achievements. Any "job" he's ever had was someone funded by tax payers.
Now he's on TV having a joint press conference with the PM of Thailand, a woman. The difference between the 2 is striking. Obama sounds just like the amature he is (all over the board and not saying anything coherent) and the PM sounds like a highly educated true leader. She sounds confident and makes sense.

Anonymous said...

Read up on Dynasty Trusts.The lawmakers continue to lie to all of us.This is why the wealthy will never pay any more taxes,just us working citizens.

Anonymous said...

Class envy and jealously are tactics used by the liberal elite. And while Fidel Castro just brought the army and took your land our bullies prefer to let the IRS do their dirty work for them in the name of "equality". Tell me how it is equal to take land away from someone who worked hard and earned it.
And while I'm on this rant how can the gov tax your primary residence. Think about it - they are taxing the American dream - home ownership. We have to pay a fee to the government that allows us to stay on the property we OWN. As property taxes go up it makes it even harder to keep the land that you OWN. Let's face it, the government frowns on we the people owning anything and will eventually end up with it all.
Pitting the haves against the have nots is nothing more than a liberal tactic they are using to help achieve that ultimate goal.

Anonymous said...

Would suck to be rich I guess.

Anonymous said...

10:04-These farmers are not rich. The problem with "you people" is you are ignorant to the concept of what is called-Net Worth.
These people have no cash but land, equipment, and other neccessiites needed to run their daily operations. Their cash is tied up in things they have already been taxed on.

Anonymous said...

Two decades ago, Kester paid the IRS $2 million when he inherited a 22,000-acre cattle ranch from his grandfather.

Yeah 10:39am. The trouble with "US PEOPLE" When someone pops up with 2 million dollars to get something he wants then wines how poor he is, i call b/s.
So now who's ignorant.

Anonymous said...

Couldn't farmers just add their children to the land deed to avoid it?

Susan said...

What I find interesting is that while some are saying (2:14 p.m.) that the farmer is whining because he had to paid $2 million in inheritance taxes, there is no comment in the article about how he paid for it. I am sure he did not have $2 million laying around not being used. In all probability, he had to either sell some land, equipment or borrow the money.

I am a farmer and there are times that my cash in the pocket is very low (or empty). With a farm there are always bills to pay and mine are bigger than yours! For example, I hear individuals complaining that their electric bill is high - maybe in the range of $150 - $200 a month during the summer (because of air conditioning). How would you like mine??? In the summer it can run between $2,000 - $ 3,000. Yes, that's thousands. I do raise chickens, so yes, I use alot of electricity. BUT here's the kicker most aren't aware of. The broilers I raise are on the farm for about 7 weeks, and a new flock comes back on the farm in about 2 weeks after the current flock goes out. Guess what, I don't get paid each week or every other week. I get paid after the flock goes out so that means I only get a pay check about every 8 - 9 weeks. Try budgeting your bills for that time periord!

As my dad used to say, don't talk about the farmer with your mouth full. Be very glad he is feeding you at least 3 times a day!