Mitt Romney provides a very similar tax solution to what is in place now, with a generalized theme of reduction over time. His tax focus is majorly on corporate taxes, but here is what we found regarding his plan. 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
GovernorRomney’swebpageontaxes, which gives both a general outline as well as links to more details. 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.
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Candidate
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Initial Investment
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Tax on Gains
|
Amount @ year 20
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Tax on Withdrawal
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Net withdrawal
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Estate Tax
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Net Inheritance
|
|
Obama
|
$200,000
|
0%
|
$400,000
|
|
$340,000
|
|
$340,000
|
|
Romney
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$200,000
|
0%
|
$400,000
|
|
$340,000
|
0%
|
|
In summary, Governor Romney’s plan does not affect our tax rate on capital gains or income, although he does plan to eliminate the estate tax altogether.
[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] Although governor Romney says that he will eliminate taxes on investments for individuals with an AGI of under $200,000, our investment would put us over that limit, thus the tax rate would remain the same.
[4] Both of these end amounts do not factor in any spending before inheritance.