S.4122

Equal Tax Act aims to equalize treatment of capital gains and earned income.

The Equal Tax Act amends the Internal Revenue Code to introduce several changes related to capital gains and earned income. It limits preferential tax rates for dividends and capital gains to incomes of $1,000,000 or less. The bill also deems certain property transfers by gift or upon death as sales for their fair market value, with exceptions for transfers to spouses or surviving spouses. It introduces an exclusion of certain amounts of realized capital gain, particularly for transfers at death, up to $1,000,000.