Capital Gains and Dividends
In 2010, top rate of 15% for capital gains and dividends.
In 2011, top rate of 20% for capital gains, and dividends taxed as ordinary income.4
All capital gains and dividends taxed at ordinary income rates.5

4 Collectibles (e.g., coin, art, antiques) are taxed at 28% and unrecaptured gain on real estate is taxed at 25%.
5 An alternative could be to exclude a portion of capital gains and dividends from income (e.g. 20%), reducing the effective top rate on investment income. To offset this while maintaining progressivity in the code, the top rate on ordinary income would need to be increased.