Dividend "trigger" income levels for 2023

[Samsung4321]

USA tax on gross dividends (taxable profit): 21%.

A 'flat' tax rate of 21% is paid by a shareholder's company on a shareholder's share of profits but the shareholder does not receive a refundable tax credit.

On dividends, the USA shareholder pays additional tax = double taxation.

'The maximum tax rate for qualified dividends is 20%; ordinary dividends are taxed at income tax rates, which for the 2022 and 2023 calendar years, has a maximum rate of 37%.'
https://www.investopedia.com/terms/q/qualifieddividend.asp

Contrast: A USA company pays tax on an employee's wage and the employee receives a refundable tax credit.

To minimise USA double taxation of dividends, companies minimise dividend payments and pay earnings more in the form of capital gains 'concessionally taxed' in the hands of the shareholder.

Contrast with Australia's dividend taxation (franking credits) where the shareholder receives a refundable tax credit for taxes paid on their share of profit paid as net dividends. The result being dividend income being taxed at the same rate as other income and excess tax being refunded.
https://www.investopedia.com/terms/f/frankingcredit.asp

 

[Samsung4321]

A 'flat' tax rate of 21% is paid by a shareholder's company on a shareholder's share of profits but the shareholder does not receive a refundable tax credit.

'The maximum [personal] tax rate for qualified dividends is 20%; ordinary dividends are taxed at income tax rates, which for the 2022 and 2023 calendar years, has a maximum rate of 37%.'
https://www.investopedia.com/terms/q/qualifieddividend.asp

Largest dividend tax rate:
= 1 - (1 - 21%) * (1 - 37%)
= 50.23%

'Under current U.S. federal tax policy, the capital gains tax rate applies only to profits from the sale of assets held for more than a year, referred to as "long-term capital gains." The current rates are 0%, 15%, or 20%, depending on the taxpayer's tax bracket for that year.'

https://www.investopedia.com/terms/c/capital_gains_tax.asp