On Sun, 04 May 2008 17:37:04 GMT, Jay Maynard
wrote in
:

On 2008-05-04, Larry Dighera wrote:
As a percentage of your total income how much is derived from
dividends?

0.

How is this relevant?

Here's a quote from an unbiased source:

http://www.smartmoney.com/taxmatters...story=20030527
Qualified Dividends Now Taxed at 15% or Less
As you know, dividends have always been taxed as "ordinary
income." That meant you paid your regular tax rate, which could be
as high as 35% (formerly 38.6%).

That was then. Effective for all of 2003 through the end of 2008,
qualified dividends from domestic corporations and qualified
foreign corporations will be taxed at the same low rates as
long-term capital gains. And those rates have been reduced, too
(see below). Bottom line: The maximum rate on qualified dividends
is now only 15%. And if you're in the 10% or 15% rate bracket (see
the table above), your dividends will be taxed at only 5%. (For
2008, the rate will be 0%, but just for that one year.)
...

One more thing: The new low rates don't apply to dividends
received in tax-deferred retirement accounts (traditional IRAs,
401(k) accounts, SEP and Keogh accounts, and the like). Dividends
accumulated in these accounts will still be taxed at your regular
rate (up to 35%) when withdrawn as cash distributions.