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Equal Tax Act: Higher Capital Gains Taxes for High Earners and Changes to Inherited Assets

This bill aims to equalize the tax treatment of capital gains and earned income for incomes exceeding $1 million. The core change is treating the transfer of assets by gift or death as a sale at fair market value, subjecting unrealized gains to tax. However, the bill includes a $1 million exclusion for gains realized at death, special provisions for family farms and businesses, and an installment payment option.
Key points
Higher Capital Gains Taxes: Preferential tax rates for dividends and capital gains will be limited to incomes of $1,000,000 or less.
Deemed Realization at Gift or Death: Any property transferred by gift or at death shall be treated as sold for its fair market value on the date of such transfer.
Exclusions: The bill excludes up to $1 million of net capital gain realized at death from gross income (adjusted for inflation after 2026).
Family Farms and Businesses: Qualifying family farms and businesses may exclude 50% of the gain exceeding $1 million, provided there is a certification of continued use for 10 years.
Limitation on Like-Kind Exchanges: The exclusion of gain from real estate exchanges is limited to $500,000 annually and $1 million in aggregate, unless the property is used for farming purposes.
Installment Payment Option: Taxpayers may elect to pay the tax on gains realized by reason of death in 2 to 5 equal installments.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5336
Sponsor: Rep. Ramirez, Delia C. [D-IL-3]
Process start date: 2025-09-11
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Equal Tax Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5336.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-09-11.

What are the main provisions?

Key points include:

  • Higher Capital Gains Taxes: Preferential tax rates for dividends and capital gains will be limited to incomes of $1,000,000 or less.
  • Deemed Realization at Gift or Death: Any property transferred by gift or at death shall be treated as sold for its fair market value on the date of such transfer.
  • Exclusions: The bill excludes up to $1 million of net capital gain realized at death from gross income (adjusted for inflation after 2026).
  • Family Farms and Businesses: Qualifying family farms and businesses may exclude 50% of the gain exceeding $1 million, provided there is a certification of continued use for 10 years.
  • Limitation on Like-Kind Exchanges: The exclusion of gain from real estate exchanges is limited to $500,000 annually and $1 million in aggregate, unless the property is used for farming purposes.
  • Installment Payment Option: Taxpayers may elect to pay the tax on gains realized by reason of death in 2 to 5 equal installments.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Ramirez, Delia C. [D-IL-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Taxes Real Estate Family