What You Need to Know

1. The legislation that has capped the dividend tax rate at 15 percent is set to expire on December 31, 2010. If that happens, the tax you pay on your dividend income may go up to more than 39 percent!

2. Many shareholders are not wealthy and are facing the same financial hardships as everyone else in the country. They are regular folks - senior citizens, retirees, young families - looking for solid investments that will pay a good dividend.

3. According to the Investment Company Institute, more than half of older investors cite current income as their principal reason for investing. Many need that income to make ends meet.

4. Now is not the time to raise taxes on middle-class Americans.

5. In 2007, the latest year for which full IRS data is available, more than 27 million households had dividends qualifying for the dividend tax rate reduction. That means if Congress doesn't act, millions of seniors and working families will see their taxes on dividend income spike—more than double in some cases.

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 the lower dividend tax rate.

7. Did you know that your dividends are being taxed twice? Companies already pay corporate taxes on their profits, which are distributed to investors as dividends. Then you, the investor, are taxed again on your dividend income. That's double taxation plain and simple. And it's wrong.

8. Lower tax rates on dividends help to increase above-average share appreciation, making it less expensive for companies to borrow the money they need to make important capital improvements.

9. A recent proposal by President Barack Obama would keep the dividend tax rate low for an overwhelming majority of investors—and would make the dividend tax rate reduction permanent.

10. There is something you can do. You can join Defend My Dividend and help us fight to protect your dividend income.