Replies to post #108086 on Intel Corp (INTC)

[wbmw]

As I stated previously - Earnings in a corporation when distributed in the form of salaries, or Dividends end up aty the personal level being taxed at the same exact rate per dollar earned in the corporation or if that same dollar was earned personally.

That's precisely the point. Every dollar Intel makes on product sales gets taxed, but it will never get taxed again for as long as that dollar remains belonging to the corporation. But the instant Intel gives that dollar to someone else, whether it be a supplier, an employee, or an investor - then that supplier, employee or supplier will get taxed.

That's how taxes have always worked, and that's how they will continue to work. It doesn't matter if it's a salary or an investment vehicle. The subject of the question is whether a dividend in particular should be treated as income dollars, or under the special provision of a long term investment (capital gains).

Do dividends result in the behavior of a long term investor?