Offer your thoughts or opinion on the input financial query or topic using your financial background.

The Canadian dividend tax credit: Why is it that someone can earn a lot in dividends but pay no/little tax?
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.