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What is the difference between regular income and dividends, from a tax point of view?

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What is the difference between regular income and dividends, from a tax point of view?

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Reply: Dividends are taxed at a lower rate than regular income, but the tax break is not as good as you get on capital gains. Keep in mind that in order to earn dividends or capital gains, you need to invest in equities, which involves some element of risk.

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