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Dividends have historically been taxed at much higher rates than capital gains. This leads to the claim that dividends are bad because they reduce the
Dividends have historically been taxed at much higher rates than capital gains. This leads to the claim that dividends are bad because they reduce the returns to shareholders after personal taxes. In the recent decade, the tax rates on dividends have been reduced to match the tax rates on capital gains. Are dividends and capital gains no difference nowadays, i.e. $1 in dividends is worth the same as $1 in capital gain to shareholders? Explain.
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