The "Equal Tax Act" proposes significant amendments to the Internal Revenue Code of 1986, primarily aiming to equalize the tax treatment of capital gains and earned income by limiting preferential tax rates for capital gains and qualified dividends to the portion of a taxpayer's income that does not exceed $1,000,000 . This ensures higher-income individuals pay ordinary rates on gains above this threshold, though gains from qualifying family farms or businesses transferred by gift or bequest are excluded from this income limit calculation. A major reform introduced is the deemed realization of capital gains at the time of gift or death, treating such transfers as if the property were sold at fair market value and eliminating the traditional "step-up in basis." This applies to most appreciated assets, but exceptions include transfers to a spouse, certain tangible personal property, charitable contributions, and gifts up to the annual gift tax exclusion amount. Specific rules are also outlined for various trust types, including a 30-year deemed realization for generation-skipping trusts. To mitigate the impact of deemed realization at death, the bill allows an exclusion for the first $1,000,000 of net capital gain from such transfers, adjusted for inflation. For qualifying family farms or businesses, an additional 50 percent of the gain exceeding this $1,000,000 threshold can be excluded, provided the property maintains its designated use for at least 120 months. A recapture tax applies if the use changes or ownership is transferred prematurely. To assist with the tax burden, taxpayers can elect to pay capital gains tax recognized at death in up to five equal annual installments , with interest charged at a reduced rate. The bill also mandates new information reporting for certain gifts and transfers at death. Furthermore, it places new limitations on the deferral of gain through like-kind exchanges for real property, capping non-recognition at $500,000 annually and $1,000,000 in aggregate, with exceptions for farming or same-purpose property. Finally, the legislation amends the deduction for qualified business income (QBI) under Section 199A, limiting its application to the portion of a taxpayer's taxable income that does not exceed $1,000,000, with these comprehensive changes primarily effective for taxable years or transfers occurring after December 31, 2025, aiming to increase tax revenue from wealth transfers and high-income capital gains.