Dividend Tax

In many parts of the world, dividends are counted as regular income and are taxed as such.

The dividend tax is subjected to much debate because dividend income suffers from double taxation and many consider it to be unfair. What happens is that companies pay dividends using net income, which are profits after corporate tax have been paid. So double taxation occurs when the dividend is again subjected to income tax when it is received by the shareholder.

Those supporting dividend tax however argue that the wealthy are the ones who own assets and they live off passive income such as dividends and therefore dividends need to be taxed to lessen the tax burden on the working class. This argument does hold considerable weight when you consider that the richest 10% of adults on the planet owned 85% of the world total of global assets, according to a 2006 UN report of wealth distribution.

Ready to Start Trading?

Open an account at OptionsHouse.com and get 100 commission-free trades + free virtual trading tool!

Your new trading account is immediately funded with $5,000 of virtual money which you can use to test out your trading strategies using OptionHouse's virtual trading platform without risking hard-earned money.

Once you start trading for real, your first 100 trades will be commission-free! (Make sure you click thru the link below and quote the promo code '60FREE' during sign-up)

Click here to open a trading account at OptionsHouse.com now!

Join the Discussions @ The Options Forum

Beginners Questions

Advanced Strategy Talks

RSS Feed Widget

Trading Ideas & Opportunities




Home | About Us | Terms of Use | Disclaimer | Privacy Policy | Sitemap

Copyright 2016. TheOptionsGuide.com - All Rights Reserved.