Equal Tax Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 5336 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 5336 To amend the Internal Revenue Code of 1986 to equalize treatment of capital gains and earned income. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES September 11, 2025 Mrs. Ramirez (for herself, Ms. Jayapal, Mr. Garcia of Illinois, Ms. Tlaib, Ms. Ansari, Ms. McCollum, Mr. Thanedar, Ms. Omar, Mr. Deluzio, and Mrs. Watson Coleman) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to equalize treatment of capital gains and earned income. 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 139J(c)'' after ``all other taxable income of the taxpayer''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2025. SECTION 3. DEEMED REALIZATION OF CAPITAL GAINS AT TIME OF GIFT OR DEATH. (a) Treatment as Sale.-- (1)