Scrap dividend tax credit, Lower interest income tax to encourage healthy saving | Page 3 | General financial discussion | Discussion forum

Bud said
Why is there no gross dividend tax credit in the U.S. and other countries? Don't they have double taxation to.  

why is that relevant ? What other countries do or dont is their own choice. Unless you think the "US and other countries" are the world standard, what they do must be cuz it is right, and what they dont must be cuz its wrong...

Each country has its own tax code, tax rate, health care system, welfare or whats not. I dont see any merit or benefit to fixate and compare just "dividend tax" only between countries.

Bill said
Oh, I see what you're asking, Bud. Because Canadians are nicer and care about double taxation, other people don't, how's that?  

So nice to know that the Dept of Finance and CRA care and always have our backs.

The Canadian approach is not the only possible one to address double taxation.

In the US, when the shareholder meets certain minimum holding times for the shares (such as more than 60 days during the 121-day period that begins 60 days before the ex-dividend date for common shares), the dividend becomes a qualified dividend.

Qualified dividends are subject to lower federal long-term capital gains tax rates of 0%, 15%, or 20% instead of the 10% to 37% tax rates on ordinary income.

See Qualified Dividends in IRS Publication 550.

Qualified dividends and long-term capital gains have a 0% tax rate for single filers under $40,000 of income and couples under $80,000. The 15% rate applies up to $518,000 for single filers and couples up to $622,000.

The Russian poem is described as "anti-capitalist", Alexandre. The living standards of the "working man" in the two polarities (communism, capitalism) around the world speaks pretty clearly about wealth generation and who gets the material "credit".