Equal Tax Act

The Equal Tax Act would amend the Internal Revenue Code to eliminate preferential tax rates for capital gains and dividends for taxpayers with taxable income exceeding $1,000,000, requiring such gains to be taxed at ordinary income rates. It would also treat transfers of property by gift or at death as taxable sales at fair market value, eliminating the step-up in basis for inherited assets, with exceptions for spouses, certain tangible personal property, and charitable contributions. The bill includes provisions to prevent avoidance through trust modifications and requires basis consistency with deemed realization under new Section 1261, with most changes effective for taxable years…

No official summary is available here. This one was written by AI from the bill’s text.