Thankfully, preferential tax treatment of dividend income has been largely preserved.
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2.
Many, but not all, preferred shares produce qualified dividend income that is taxed at a preferential rate of up to 20% versus the ordinary-income rate of as much as 39.6%.
WSJ: For Investors Seeking Income, Preferred Stock May Make Sense
3.
If reelected, President Obama would allow the preferential rates afforded dividends to expire in exactly this manner, meaning dividend rates may well triple in 2013.
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