What is the underlying policy rationale for current tax rule

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Describe how interest income and dividend income are taxed. What are the similarities and differences in their tax treatment?

1. What is the underlying policy rationale for the current tax rules applicable to interest income and dividend income?

2. Compare and contrast the tax treatment of interest from a Treasury bond and qualified dividends from corporate stock.

3. How are Treasury notes and Treasury bonds treated for federal and state in- come tax purposes?

4. Why would taxpayers generally prefer the tax treatment of market discount to the treatment of original issue discount on corporate bonds?

Reference no: EM13905925

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