The "Equal Tax Act" seeks to align the tax treatment of capital gains with earned income by making significant changes to the Internal Revenue Code. A key provision is the deemed realization of capital gains when property is transferred by gift or at death, treating such transfers as sales at fair market value. This new rule applies to transfers after December 31, 2026, and includes special provisions for various types of trusts and an exclusion for gifts up to the annual gift tax exclusion amount. To mitigate the impact of deemed realization at death, the bill introduces an exclusion of up to $1,000,000 of net capital gain from transfers at death. For qualifying family farms or businesses, an additional 50% of gain exceeding this $1,000,000 threshold can be excluded, provided certain use certifications are met. Furthermore, taxpayers facing capital gains at death can elect to pay the associated tax in up to five annual installments , with a reduced interest rate. The bill also modifies existing tax preferences, limiting the application of preferential capital gains rates to the portion of taxable income that does not exceed $1,000,000. Similarly, the qualified business income (QBI) deduction is restricted to the portion of taxable income below $1,000,000. These income thresholds are subject to inflation adjustments in future years. To address other tax avoidance mechanisms, the bill places annual and aggregate limitations on like-kind exchanges for real property, capping the excluded gain at $500,000 annually and $1,000,000 in total. However, exchanges involving qualified property used for farming or serving the same specific purpose are exempt from these new limitations. Finally, new information reporting requirements are established for gifts and transfers at death that trigger capital gains under the bill's provisions.