Generally, interest income is taxed at preferential capital gains rates and dividend income is taxed at ordinary rates.

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Generally, dividend income is taxed at preferential capital gains rates, while interest income is taxed at ordinary rates. This means that investors may pay lower taxes on their dividend income compared to their interest income. However, there are exceptions and special circumstances for both types of income, so it is important to consult with a tax professional for specific advice.

Generally, Interest Income Is Taxed at Preferential Capital Gains Rates