And for the individuals who receive the interest, they have to pay regular income tax rates on that income. With dividends they get a different, lower rate.
Yes, because the corporation is already paying 35% tax on the profits that the dividend was paid out of, while interest payments are deducted from taxable (corporate) income.
Yes, through an unrelated tax dodge that wouldn't make the combined dividend + profit tax any more sensible. They're still paying 35% on any profit that hasn't been expensed away somehow, and the dubious ways to expense corporate income are a separate issue from whether this "low" dividend tax is a loophole.
For a pension fund, its beneficiaries will eventually pay regular income tax rates on the fund's earnings, regardless of whether it was dividend/capgain/interest.
Life insurance and disability payouts are typically tax-free because they're paid into with after-tax dollars, but the insureco will invest the funds as it sees fit.
