Point of note on Dividends and Capital Gains.
When a sole proprietor owns a business he realizes a profit which is considered his personal income. After the expenses (the cost fo doing business) are established, what is left over is his income for his personal livelyhood.
In a corporation the Stock Holder is the Owner, and the Profits are distributed to the owners in the form of Dividends which are taxed as Capital Gains. This is because the Corporation's profits have already been taxed as Corporate Profits and therefor the distribution of such is the distribution of already Taxed Money, making taxation of “Qualified Dividends” a Double Taxation.