Final answer:
The statement is true. Individuals who can receive long-term capital gains or qualified dividend income have an advantage over taxpayers who cannot receive income in these forms.
Step-by-step explanation:
The statement is true.
Individuals who can receive income in the form of long-term capital gains or qualified dividend income do have an advantage over taxpayers who cannot receive income in these forms. This is because long-term capital gains and qualified dividend income are taxed at lower rates compared to ordinary income. For example, in the United States, the tax rate on long-term capital gains for most taxpayers is 0%, 15%, or 20%, whereas the tax rate on ordinary income can go up to 37%.
By receiving income in the form of long-term capital gains or qualified dividend income, individuals can potentially pay lower taxes and keep more of their earnings. This can incentivize investment and economic growth.