S. 4122
Introduced in Senate · March 24, 2026March 17, 2026
Mr. Markey (for himself, Mr. Sanders, Mr. Merkley, and Mr. Booker) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to equalize treatment of capital gains and earned income.
Gains from certain property transferred by gift or upon death
Exclusion of gain from transfers of appreciated assets at death
Extension of time for payment of capital gains on certain assets realized by reason of death
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. Short title.
This Act may be cited as the “Equal Tax Act”.
SEC. 2. Preferential rates for dividends and capital gains limited to incomes of $1,000,000 or less.
- (a) In general.— Section 1(h) of the Internal Revenue Code of 1986 is amended by inserting “on so much of such gain as does not cause the taxable income of the taxpayer to exceed $1,000,000 (computed after taking into account all other taxable income of the taxpayer)” after “the tax imposed by this section for such taxable year”.
- (b) Treatment of qualifying family farm or business.—Section 1(h) of such Code, as amended by subsection (a), is further amended by inserting “and without regard to gain realized from the transfer by gift or bequest of a qualifying family farm or business described in section 139M(c)” after “all other taxable income of the taxpayer”.
Effective date.—(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2026.