Contact Congress about S. 4122: Equal Tax Act

People with income over $1 million could pay higher tax rates on capital gains and dividends. Many gifts and inheritances would also trigger tax when the property changes hands, though the bill keeps exceptions for spouses, charities, and some family farms and businesses.

Modern Action explains legislation in plain English, helps you choose whether to support, oppose, or ask for changes, and drafts a message tied to the bill, your stance, and the elected officials who can act on it.

Equal Tax Act is a Senate bill in committee. The latest recorded action: Read twice and referred to the Committee on Finance.

Latest action on S. 4122: Read twice and referred to the Committee on Finance.

Who this affects: This bill mainly affects high-income taxpayers, people passing valuable assets to heirs, and families that use trusts or estate planning to delay tax. It also matters to family farms, family businesses, real estate investors using like-kind exchanges, and owners of pass-through businesses who claim the section 199A deduction. Executors, gift donors, and people receiving large gifts or bequests would also have new reporting duties.

Why this matters: This bill matters because it would make people pay tax sooner on gains that can now stay untaxed for years or even until death. That could raise taxes for high-income households and for people holding assets that gained a lot of value. It could also reduce popular estate-planning strategies that delay or avoid capital gains tax. But for some smaller estates, and for qualifying family farms and family businesses, the bill offers exclusions and payment rules that may reduce the immediate hit.

Key provisions in S. 4122

• People would keep the special lower tax rates on long-term capital gains and qualified dividends only on the first $1 million of taxable income each year. This starts for tax years after 2026.
• Most gifts and transfers at death would count as a sale at full market value. The bill does this through a new tax code section, section 1261, and that would trigger capital gains tax right then.
• Transfers to a spouse, certain spousal trusts, and charities would not trigger the new deemed-sale tax. For physical personal property, the rule covers business items, investment items, and collectibles, but not most ordinary personal stuff.
• Trusts would face these tax triggers too. The rule can apply when property goes into a trust, when the grantor is no longer treated as the owner, and every 30 years for certain long-term trusts.
• For gifts made after December 31, 2026, the recipient would usually get a basis equal to the asset's fair market value at the time of the gift. That basis cannot be higher than the amount treated as sold under the new deemed-sale rules.

How Modern Action helps you take action on S. 4122

You do not have to start with a blank letter. Modern Action turns the bill, your position, and the relevant congressional context into a message you can edit and send. The goal is to make contacting Congress clear, specific, and useful without forcing you to parse bill text or figure out the right office on your own.

Questions people ask about S. 4122

What is S. 4122?

People with income over $1 million could pay higher tax rates on capital gains and dividends. Many gifts and inheritances would also trigger tax when the property changes hands, though the bill keeps exceptions for spouses, charities, and some family farms and businesses.

How do I support or oppose S. 4122?

Choose support, oppose, or ask for changes on Modern Action. The action flow drafts the message for you and keeps the wording tied to this bill.

Who should I contact about S. 4122?

Modern Action uses your location to route the action to the congressional offices relevant to the bill and your representation.

Can Modern Action explain S. 4122 before I act?

Yes. Modern Action gives you a plain-English summary, current status, and action context before you send anything.