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Author: DeltaOne81 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35377  
Subject: Re: Interest tax rate Date: 7/8/2006 12:58 PM
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What is the marginal federal tax rate if an individual is in the top bracket?

35%

But that doesn't matter to you or anyone else. What matters is the tax bracket you or they are in.


Ultimately, I'm tring to determine which has the better after tax return in a taxable account: a stock with a qualified dividend or a bond with a comparable yield as a stock?

While the math will give you an answer, I'm not so sure how practical of an answer it will be. A stock and bond are very different animals, even dividend paying stocks. There are much bigger questions about risk and return that should decide which you are in, much more so than any 'tax equivalent yield' math.

It kinda seems to me like deciding whether to buy a car or a housed based on the interest rate of loan. They're different things for different uses.
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