It can be difficult to figure out what the Presidential candidates are actually proposing. They rarely get into specifics in their speeches. The conventions are known for theater, not for details about what the candidates actually propose to do. Today, let’s look at Mitt Romney’s plan for estate and investment taxes.
Romney proposes that anyone making under $200,000 should pay no taxes on capital gains, dividends and interest income. Anyone making more than that would pay a rate of 15% on investment income. This would make growing wealth in a Trust easier. Importantly, Romney also proposes to completely eliminate the estate tax.
Of course, tax cuts need to be paid for. Romney suggests paying for his cuts by eliminating credits and deductions. He has not suggested which ones to eliminate. This has led many to speculate that many families would actually pay more income tax under the Romney plan. We cannot know for sure until Romney gets more specific, which he has time to do in the upcoming months before the election.