Final answer:
The statement is true; qualified dividends are taxed at preferential rates of 0%, 15%, or 20%, depending on the individual's income and filing status, which align with the U.S. progressive tax system.
Step-by-step explanation:
The statement that qualified dividends received by individuals are taxed at either a 0 percent, a 15 percent, or a 20 percent preferential rate is True. These rates depend on the individual's taxable income and filing status. Qualified dividends are indeed subject to these lower tax rates rather than ordinary income tax rates, which are progressive and can be significantly higher.
For example, as income rises, the percentage of income one must pay in federal income taxes increases. This is characteristic of the United States' progressive tax system. As detailed in the provided content, marginal tax rates apply to additional income earned and these rates increase as a person's income moves up through the tax brackets.
Understanding how dividends and other investments are taxed is essential for investors. Stable companies often provide dividends as a return on investment, and the tax treatment of these dividends can significantly impact the real return after taxes, especially when considering inflation and other factors.