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. "The reason is simple: dividends are taxed at ordinary income rates and the rise in the price of a stock (long term) is taxed at 20%." Ok, I understand that dividends are taxed at ordinary income rates, however, i don't understand what you mean by saying that "the price of a stock (long term), is taxed at 20%. From my limited understanding, one would only incur a tax at the sale of a stock, which would occur many years down the road(assuming one is a long term, buy and hold investor,and threfore at a lower rate due to a lower income tax bracket). Please clarify what you said, or meant to say, because i am very confused. thanks.
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