If both dividends and capital gains are taxed at the same ordinary income tax rate, some difference in the tax effect still exists because:

A.Dividends are immediately taxed while capital gains are deferred until the stock is sold.

B.Capital gains are immediately taxed while dividends are deferred until the stock is sold.

C.Both dividends and capital gains are theoretically taxed every year but in practice, capital gains are rarely taxed. D.There is no difference: both dividends and capital gains are taxed every year.