Equal Tax Act

This bill changes how federal income tax applies to investment gains starting in 2027. Lower tax rates on dividends and capital gains would apply only to the part of a taxpayer's income that does not exceed $1,000,000. Property given as a gift or passed on at death would be treated as sold at its market value, so gains would be taxed at that time, with exceptions for transfers to spouses and charities, an exclusion of the first $1,000,000 of gains at death, and partial relief for family farms and businesses. The bill also limits tax-free real estate swaps (like-kind exchanges), caps the qualified business income deduction, requires reporting of certain gifts and bequests, and lets heirs pay tax on some inherited gains over up to 5 years.

Full text and official record on Congress.gov

Sponsors

• Edward J. Markey Democrat sponsor
• 3 cosponsors