If Both Dividends and Capital Gains Are Currently Taxed at the Same

question 13

Multiple Choice

If both dividends and capital gains are currently taxed at the same ordinary income tax rate, the effect of the tax is different because:

• A) capital gains are actually taxed, while dividends are taxed on paper only.
• B) dividends are actually taxed, while capital gains are taxed on paper only.
• C) dividends are taxable when distributed while capital gains are deferred until the stock is sold.
• D) capital gains are taxable when distributed while dividends are deferred until the stock is sold.

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Definitions:

Impeachment Powers

Impeachment powers are constitutional provisions that allow legislative bodies to bring charges against public officials, such as the president, for crimes and misdemeanors, potentially leading to their removal from office.

Interpret the Constitution

The process by which the judiciary, especially the Supreme Court, explains and applies the provisions of the U.S. Constitution to legal cases.

Society of the Cincinnati

An exclusive hereditary society formed by officers of the Continental Army in 1783 to preserve the ideals and fellowship of the American Revolutionary War.