What about TAXES on Dividends?

Who believes that the tax that the government imposes on DIVIDEND income is only your income tax rate OR a long term gain tax rate???

For a simple example, lets assume that your dividends, that are received from a company stock, are taxed at your income tax rate.  We would argue that the company, that YOU are an owner of, has already paid corporate income taxes before any distribution.  This means that YOU already paid a TAX on earnings.

Sounds simple, right??  What about any “taxes” that the company has paid BEFORE earnings are calculated??  These include, business licenses (perhaps in EVERY jurisdiction) that they conduct business, taxes for FUEL used in any transportation of product, etc.

How about a pharmaceutical company??  How much do you think they pay the government to register, test, sell the drugs that make your life better?? 

We have NOT included any compliance expenses in our calculations.  These would include UNTOLD numbers of accountants, lawyers and staff REQUIRED to fill out FORMS for the government.