Coalition seeks freeze on dividend tax

The Hill reports:

More than 40 utility companies and associations will join forces next week to storm Capitol Hill to fight for the preservation of dividend income tax rates that are set to expire on Dec. 31.

Absent congressional action, the 15 percent tax on dividends resets in January 2011 to pre-2001 levels when most dividends were taxed as income, with rates that topped out at 39.6 percent.

Just a warning, the demand for stocks will go down holding all other variables equal.