H.R.5336

Equal Tax Act aims to equalize treatment of capital gains and earned income by limiting preferential tax rates to incomes of $1,000,000 or less.

The Equal Tax Act amends the Internal Revenue Code to limit preferential tax rates for dividends and capital gains to incomes of $1,000,000 or less. It introduces provisions for the deemed realization of capital gains at the time of gift or death, treating such transfers as sales for their fair market value. The bill also includes an extension of time for payment of capital gains on certain assets realized by reason of death, allowing taxpayers to pay in up to five equal installments.