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Consider the following top federal tax rates in the United States: Personal Tax Rates Year Corporate Tax Rate Interest Income Dividends Capital Gains 2000 35%
Consider the following top federal tax rates in the United States: Personal Tax Rates
Year | Corporate Tax Rate | Interest Income | Dividends | Capital Gains |
2000 | 35% | 40% | 40% | 20% |
2005 | 35% | 35% | 15% | 15% |
In 2000, assuming an average dividend payout ratio of 50%, the effective tax rate for equity holders was closest to:
69.9% | ||
65.5% | ||
54.5% | ||
30.3% |
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