I am imagining a buyback&burn of stock by its corporation. It reduces the total supply of the stock which usually results in risen stock price.
And risen stock price also results in tax, so I see the same result in both way.
Is the taxation of dividend and trade profit have significant difference in US tax law?
Profits from stocks held for less than a year are taxed at your ordinary income tax rate. Ordinary dividends earned on your stock holdings are taxed at regular income tax rates, not at capital gains rates.
It seems like both have same rate of taxation.
But, if the reward is dealt as interest rate, the tax rate will be lower than the two described above.