Quote:
Originally Posted by Slava
So what you're wanting is a way to invest and have the gains not taxable at all because the money you invested was already taxed once?
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The article compares a dividend income of say $40K to a masseur earning $40K; and that the masseur is being taxed higher becasue dividend income is sheltered partly by DTC. That's not fair as the company has already been taxed once before paying dividends and that's why we have the DTC mechanism.
As far as $40K capital gains vs $40K salary, the government wanted to incentivize investment and so capital gains is 50% taxable or gave you the life time capital gain exemption before. Also the use of capital losses are very restrictive so it's not fair to compare the more beneficial capital gains treatment to salary tax as well.