Use the information for the question(s)below.
Consider the following tax rates: *The current tax rates are set to expire in 2008 unless Congress extends them.The tax rates shown are for financial assets held for one year.For assets held less than one year,capital gains are taxed at the ordinary income tax rate (currently 35% for the highest bracket);the same is true for dividends if the assets are held for less than 61 days.
-The effective dividend tax rate for a buy and hold individual investor in 2006 is closest to:
A)0%
B)35%
C)15%
D)20%

Question

Use the information for the question(s)below.
Consider the following tax rates:  *The current tax rates are set to expire in 2008 unless Congress extends them.The tax rates shown are for financial assets held for one year.For assets held less than one year,capital gains are taxed at the ordinary income tax rate (currently 35% for the highest bracket);the same is true for dividends if the assets are held for less than 61 days.
-The effective dividend tax rate for a buy and hold individual investor in 2006 is closest to:
A)0% 
B)35% 
C)15% 
D)20%

Quizplus · Accepted Answer

C)τ_d = 15%,τ_g = 0% (Buy and Hold) 11ea7cce_3cc3_4aa1_928c_799ea8a30eb8_TB1626_11 = 11ea7cce_3cc3_71b2_928c_ebcb921a4a57_TB1626_11 = 11ea7cce_3cc3_71b3_928c_2d3ceece68a9_TB1626_11 = .15

Use the Information for the Question(s)below