# 119-s-4122: Equal Tax Act 119-s-4122, Equal Tax Act, is a 119th Congress bill sponsored by Sen. Markey, Edward J. [D-MA] (D-MA); status introduced; PRIA reads it as touching household money (as of 2026-04-21). - Canonical: https://policyrisk.com/legislation/119-s-4122 - As of: 2026-04-21 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-s-4122 - Congress: 119 - Title: Equal Tax Act - Status: introduced - Introduced: 2026-03-17 - Sponsor: Sen. Markey, Edward J. [D-MA] (D-MA) - Cosponsors: 3 - Policy area: Taxation - Touches household money: yes - Last recorded action: 2026-04-21 ## Summary **Treat gifts and inheritances as taxable sales and limit who gets low capital-gains and dividend rates.** This bill would tighten who qualifies for preferential capital-gains and qualified dividend rates and would treat many gifts and transfers at death as if sold at fair market value. - Families and heirs would see transfers taxed on any built-up gain because gifts and inheritances would be treated as sales at fair market value. The bill also creates a $1,000,000 exclusion for gains on transfers at death and a 50% additional exclusion for certified family farms or businesses. - Family farmers and small business owners get a targeted carve-out. To qualify they must meet a 120-month use and certification rule, but excluded gains can be recaptured if the operation stops or ownership changes. - Investors, high-income taxpayers, and pass-through business owners would lose some tax shelters. Preferential rates for capital gains and qualified dividends would apply only if taxable income is $1,000,000 or less. The 20% qualified business income deduction would be limited by the same $1,000,000 taxable income cap. The bill would also limit like-kind exchange deferrals for qualifying farm real estate to $500,000 per year and $1,000,000 in total. ## Cosponsors (3) - Sen. Sanders, Bernard [I-VT] (I-VT), 2026-03-17T00:00:00.000Z - Sen. Merkley, Jeff [D-OR] (D-OR), 2026-03-17T00:00:00.000Z - Sen. Booker, Cory A. [D-NJ] (D-NJ), 2026-03-17T00:00:00.000Z ## Provisions PRIA read - Family farm inheritance exclusion: benefit, high. This bill would exclude up to $1,000,000 of net capital gain from transfers at death. For qualifying family farms or family businesses that meet a 120-month use and certification test, 50% of any gain above $1,000,000 would also be excluded. The $1,000,000 amount would be inflation adjusted after 2… - Limits on capital gains rates: cost, high. This bill would make the lower tax rates for long-term capital gains and qualified dividends apply only to the portion of gain that does not cause your taxable income to exceed $1,000,000 in a year. Gains from qualifying family farm transfers would be carved out of that $1,000,000 limit. The rule w… - Cap on pass-through business deduction: cost, high. This bill would limit the qualified business income deduction so it only applies to taxable income up to $1,000,000. It would also change the calculation by using all income other than qualified business income in the numerator. These changes would apply for taxable years beginning after December 3… - Limits on farm like-kind exchanges: cost, medium. This bill would cap like-kind exchange nonrecognition for qualifying farm real property at $500,000 per year and $1,000,000 in total across years. 'Qualified property' would be limited to property used in farming or exchanged for property with the same farm purpose. The cap would apply to exchanges… - New reporting for gifts and bequests: cost, low. This bill would require a donor or an executor to file an information return and give the recipient a statement for certain gifts and transfers at death. The statement must show the recipient's name and TIN, a property description, the fair market value, and the recipient's basis. The Secretary wou… - New tax on gifts and inheritances: mixed, high. This bill would treat most property you give or inherit as if sold at its fair market value on the transfer date. Gifts after December 31, 2026 would generally get a new basis equal to the gift's fair market value, which can raise tax when recipients later sell. Transfers between spouses (including… - Installments for death-related taxes: mixed, medium. This bill would let a taxpayer elect to pay tax from gain recognized at death in 2 to 5 equal annual installments. The first installment would be due by the tax return due date for the year of the gain, including extensions. Interest on deferred amounts would be charged at 45% of the usual IRS annu… ## Related bills - 119-s-5066: Health Equity and Accountability Act of 2026 - 119-s-5283: Momnibus Act - 119-s-1507: Agriculture Resilience Act of 2025 - 119-s-3990: PrEP Access and Coverage Act of 2026 - 119-s-2823: FAMILY Act - 119-s-5134: Green New Deal for Health Act ## Sources - [119-s-4122 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/4122) ## Related - [119-s-5066: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-s-5066) - [119-s-5283: Momnibus Act](https://policyrisk.com/legislation/119-s-5283) - [119-s-1507: Agriculture Resilience Act of 2025](https://policyrisk.com/legislation/119-s-1507) - [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990) - [119-s-2823: FAMILY Act](https://policyrisk.com/legislation/119-s-2823) - [119-s-5134: Green New Deal for Health Act](https://policyrisk.com/legislation/119-s-5134) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-s-4122 (as of 2026-04-21).