Equal Tax Act

Tax Relief for Lower and Middle Income Earners: Preferential rates for dividends and capital gains remain available for those with taxable income of $1,000,000 or less (Section 2(a)).

Protection for Family Farms and Businesses: Gains from the transfer of qualifying family farms or businesses by gift or bequest are not counted toward the $1,000,000 income limit for preferential rates (Section 2(b)).

Exclusions for Death Transfers: Gross income will not include the first $1,000,000 of net capital gain from transfers at death (Section 4(a)(1)).

Support for Family Business Continuity: 50 percent of capital gains exceeding $1,000,000 from the transfer of a certified qualifying family farm or business at death are excluded from gross income (Section 4(a)(2)).

Flexible Tax Payments After Death: Taxpayers can elect to pay taxes on eligible property recognized at death in installments over 2 to 5 years (Section 6(a)(1)).

Reduced Interest Rates for Death-Related Taxes: Taxes paid via the installment plan for gains realized by reason of death will be charged interest at 45 percent of the standard annual rate (Section 6(b)).

Increased Tax Burden for High Earners: Taxpayers with incomes exceeding $1,000,000 lose the preferential tax rates for dividends and capital gains (Section 2(a)).

Taxation of Gifts and Inheritances: Most property transferred by gift or at death is now treated as sold at fair market value, potentially triggering immediate tax liabilities (Section 3(a)(1)).

Limits on Real Estate Tax Deferral: The amount of gain excluded from like-kind exchanges for non-qualified property is limited to $500,000 annually and $1,000,000 in total (Section 7(a)).

Restrictions on Business Deductions: The deduction for qualified business income is limited to taxpayers with taxable income not exceeding $1,000,000 (Section 8(a)(1)).

Increased Reporting Requirements: Individuals making gifts or executors handling transfers at death must now furnish the Secretary with the recipient's identity, property descriptions, and fair market values (Section 5(a)).