Did not know that. It is strange because it may be assuming same tax for everyone. Typically, I have to compute my annual income by accounting for wages+dividends+capital gains - deductions before I get to taxable income and then tax bracket. In deductions, I deduct property taxes, capital losses, state taxes, investment interest (margin interest), charitable contributions etc.Big Daddy, equity dividend in India is taxed before it is distributed in share/MF holders.
Some people can also deduct university tuition and health care expenses. It is pretty complicated. Also, Obama was saying that tax on dividend interest for rich should be different. That proposal did not go anywhere as it was pretty stupid because rich would have sold certain shares and bought something else.