Newt Gingrich offers that he will return the American tax system to one that is reminiscent of the Reagan era. So let’s see how that might look for 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
SpeakerGingrich’spage on the economy, that is where we got these percentages. 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
|
|
Gingrich
|
$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.