What You Need to Know

1. Today's lower dividend tax rates are set to expire on December 31, 2010. This could lead to unintended consequences—including a 164% tax hike for some—unless Congress acts.

2. There is a perception that lower dividend tax rates benefit only wealthy taxpayers. But that just isn't the case. Millions of Americans—from all income levels and all walks of life—own stocks that pay dividends.

3. In 2007, the latest year for which complete IRS data are available, more than 27 million tax returns had dividends qualifying for the dividend tax rate reduction.

4. According to the Investment Company Institute, more than half of older investors cite current income as their principal reason for investing. Many seniors need dividends to supplement their retirement income.

5. As the nation tries to recover from one of the worst economic periods since the Great Depression, now is not the time to raise taxes and discourage investment.

6. Taxpayers with investments directly and indirectly in utility company stocks account for 60 percent of all tax returns with qualified dividends. That means people who invest in utilities account for well more than half of all investors benefiting from lower dividend tax rates.

7. Raising dividend tax rates to their previous levels will create a tax policy that favors capital gains over dividends.

8. Raising dividend tax rates will raise the cost of capital, making it more difficult to finance cleaner energy projects and technologies that create high-quality jobs in many states.

9. Raising dividend tax rates will disadvantage the largest dividend-paying companies and could reduce the level of dividends paid to shareholders.

10. There is something you can do. You can join Defend My Dividend and ask Congress to stop a dividend tax hike!