Why effect of tax is different

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If both dividends and capital gains are taxed at the same ordinary income tax rate, the effect of tax is different because:

A. Capital gains are actually taxed, while dividends are taxed on paper only

B. Dividends are taxed when distributed while capital gains are deferred until the stock is sold

C. Both dividends and capital gains are taxed every year

D. Both A and C

Reference no: EM132537877

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