In a Classical Tax System,_____

In a classical tax system,_____.

A) dividends are taxed as ordinary income,and capital gains taxed at a lower rate than ordinary income
B) dividends are tax-free and capital gains are taxed
C) investors who receive taxable dividends get a tax credit for part or all of the taxes paid by the corporation
D) the tax credit partly offsets the personal taxes the investors must pay on dividend income