02-07-2012, 09:43 PM
The article seems to say that the trust was funded by Romney's after-tax dollars.
And that Mitt is currently paying the taxes so the trust assets can accumulate.
After his death the kids still pay income tax from trust earnings, since it is a pass-through entity.
In their case trust income will probably be from investments, so they'd likely be taxed mostly at the long-term capital gains rate (15% this year, but rising to 24% in 2014)
If instead the trust held commercial buildings that were rented the kids would pay at ordinary income rates.
Plus any state taxes based on where they reside.
And that Mitt is currently paying the taxes so the trust assets can accumulate.
After his death the kids still pay income tax from trust earnings, since it is a pass-through entity.
In their case trust income will probably be from investments, so they'd likely be taxed mostly at the long-term capital gains rate (15% this year, but rising to 24% in 2014)
If instead the trust held commercial buildings that were rented the kids would pay at ordinary income rates.
Plus any state taxes based on where they reside.
Ted King wrote:
like the Romney children - is that they could live off of their trust fund money without paying any federal taxes at all. That's just flat out wrong.