National Dividend Act of 1979

National Dividend Act of 1979 - Establishes a program for the distribution of corporate income tax, capital gains tax, and insurance company income 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 an amount equal to the National Dividend Payment, as computed under this Act, multiplied by the number of registered voters in such State.

Establishes the National Dividend Payment Trust Fund. Directs the payment of specified amounts to the Trust Fund between 1980 and 1983. Establishes a National Dividend Review Board to review the manner in which payments are made from the Trust Fund and to make investments of trust funds which are not required to meet current expenses.

Amends the Internal Revenue Code to exclude from gross income any dividend income, including dividends received under this Act, received by a taxpayer from a domestic corporation.

Allows an income tax deduction to corporations for a specified amount of dividends on the preferred stock of a public utility.

Prohibits an increase of corporate income tax rates above 50 percent. Limits increases in Federal expenditures during the five year period beginning after the date of the enactment of this Act to an amount which is attributable to inflation.