Equal Tax Act

This bill, titled the Equal Tax Act, proposes changes to how the U.S. tax system treats capital gains and earned income. It would limit preferential tax rates for capital gains to individuals with taxable incomes of $1,000,000 or less, while maintaining lower rates for qualifying family farms and businesses. Additionally, the bill would require taxpayers to recognize capital gains when property is transferred through gifts or inheritance, except for transfers between spouses and certain charitable contributions. The legislation also includes provisions for reporting certain gifts and bequests, allows for extended payment terms for taxes owed on gains realized due to death, and places limits on using like-kind exchanges to defer taxes on real estate gains.