Assume that dividends are taxed at your marginal tax rate of 28% while capital gains are taxed at 15%. How much more will you net if you earn $1,000 in capital gains than if the $1,000 were
Dividend income?

Question

Quizplus · Accepted Answer

If you earn $1,000 in dividends, you will pay $280 in taxes (28% of $1,000), leaving you with $720 net. 
If you earn $1,000 in capital gains, you will pay $150 in taxes (15% of $1,000), leaving you with $850 net. 
The difference is $130 ($850 - $720), so you will net $130 more by earning $1,000 in capital gains than by earning $1,000 in dividends.

Assume That Dividends Are Taxed at Your Marginal Tax Rate