1. According to conventional wisdom, you should stay away from high-yielding stocks since dividends are taxed more heavily than long-term gains. 2. But taxing dividends from T-billsis illegal and unfair to small investors, claims the Investment Company Institute, an investment company industry association. 3. Buying back stock is more desirable than increasing dividends because dividends are taxed, York said. 4. Corporate dividends are taxed at a relatively low rate and would therefore be advantageous to Liberty. 5. Dividends were already taxed at the company. 6. Dividends are taxed at ordinary income tax rates, in the year they are paid. 7. Dividends are taxed less than sales. 8. First, dividends are taxed twice, because they are paid out of after-tax corporate earnings and then must be reported as taxable income by individuals. 9. One reason is that dividends are taxed twice, first as corporate income and then at the individual level. 10. Part of the problem for companies wishing to reward shareholders is that dividends are taxed twice by Uncle Sam. |