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the canadian dividend tax credit: why is it that someone can earn a lot in dividends but pay no/little tax?
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basically, yes. that doesn't mean that it's easy to do. the government provides a dividend tax credit since an individual takes on more risk to invest in dividend-paying corporations rather than trading their human capital for an income. thus, for the most part, $1 earned from dividends is taxed much less than $1 earned from income or interest. finally, note that foreign dividends are not eligible for the dividend tax credit, and are not preferentially taxed.
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