National Dividend Act of 1987

National Dividend Act of 1987 - Establishes a program for the distribution of certain corporate tax revenues to the registered voters of each State in the form of dividend payments.

Directs the Secretary of the Treasury to pay to the chief financial officer of each State, in accordance with a prescribed schedule, an amount equal to the National Dividend Payment, as computed under this Act, multiplied by the number of registered voters in such State.

Sets forth criteria and procedures to govern: (1) the chief financial officer's selection of an incorporated bank to act as the State's disbursing agent; and (2) payments to qualified voters.

Establishes in the Treasury the National Dividend Payment Trust Fund. Directs the payment of specified amounts to such Fund from revenue received from: (1) the corporate income tax; (2) the tax on the unrelated business income of certain tax-exempt organizations; (3) the capital gains tax; (4) the tax on insurance company income; and (5) the alternative minimum tax on corporations. Establishes a National Dividend Review Board to review the manner in which payments are made from the Fund and to make investments of Fund amounts not required to meet current expenses.

Amends the Internal Revenue Code to exclude from gross income, for income tax purposes, all dividend income, including dividends received under this Act, received by a taxpayer from domestic corporations.

Increases the corporate income tax deduction for dividends received by a corporation on the preferred stock of a public utility.

Disallows any deduction for any dividend received by a life insurance company to the extent such dividend is a distribution out of tax-exempt interest.

Prohibits an increase of corporate income tax rates above 34 percent.

Amends the Congressional Budget and Impoundment Control Act of 1974 to declare it to be out of order in either the House of Representatives or the Senate to consider budget resolutions for fiscal years 1989 and thereafter that would increase the level of total budget outlays beyond those budgeted for FY 1988.