Tax rates on dividends and capital gains differ across investors for a variety of reasons including ________.

Question

Quizplus · Accepted Answer

The tax rates on dividends and capital gains for investors differ based on their income, investment horizon and tax jurisdiction. In some countries, there may be special tax treatments for certain types of investors or entities, such as retirement accounts or foreign investors. Additionally, the tax rates on dividends and capital gains may vary depending on how long an investor holds the asset before selling or receiving dividends, with lower rates for longer holding periods. Therefore, all of the above options are reasons why tax rates on dividends and capital gains differ across investors.

Tax Rates on Dividends and Capital Gains Differ Across Investors