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> I hate that dividends have such disadvantageous tax treatment in America What do you mean by this? Qualified dividends are taxed at long term capital gains r
by ac29 3y ago
> I hate that dividends have such disadvantageous tax treatment in America
What do you mean by this? Qualified dividends are taxed at long term capital gains rates, which is an enormous advantage compared to nearly all other forms of income.
- memling 3y agoDividends are taxed twice: once as profit to the company issuing the dividend and once when the recipient receives it.
- venusenvy47 3y agoIsn't this the normal cycle of money? Continuing the example, the recipient spends some of this dividend money at Starbucks and pays sales tax. Then Starbucks pays income tax on the money and the cycle repeats.
- s1artibartfast 3y agoYes, money keeps being taxed but the number of tax events changes depending on the path the money travels. It can have more or fewer taxable events.