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Q: Are dividends really taxed twice?- H.M., Omaha, Neb. A: Yup. Imagine that Carrier Pigeon Communications (ticker: SQUAWK) rakes in $100 million in sales one year and, after subtracting expenses, keeps $20 million as its operating profit. Uncle Sam demands his share, in taxes. Corporate income tax rates can approach 40 percent. So perhaps $13 million will remain after taxes as net profit.