Rick Perry’s “Cut, Balance and Grow” plan calls for a flat tax system and an elimination of both the Estate (sometimes referred to as Death) tax and the Capital Gains tax. So let’s see how the Governor’s plan might affect our 20 year, $200,000 investment. Take a look at the footnotes on each column to see a brief explanation. Also feel free to too look at
RickPerry’swebsiteonhis “Cut, Balance, andGrow” plan, which is where we retrieved this data. Remember, the following numbers are just to help give you an idea of how a particular candidate’s plan could affect your investments. We have also put in the numbers which reflect the current tax scenario.
|
Candidate
|
Initial Investment
|
Tax on Gains
|
Amount @ year 20
|
Tax on Withdrawal
|
Net withdrawal
|
Estate Tax
|
Net Inheritance
|
|
Obama
|
$200,000
|
0%
|
$400,000
|
|
$340,000
|
|
$340,000
|
|
Perry
|
$200,000
|
0%
|
$400,000
|
0%
|
$400,000
|
0%
|
|
In summary, this plan would allow us to retain and extra $60,000 due to the elimination of the capital gains tax.
[1]This assumes that we are in the 28% tax bracket
[2]Estate taxes currently are only applied on the amount over $5,000,000
[3] Both of these end amounts do not factor in any spending before inheritance.