In a move cheered by economic justice advocates, US Sen. Ed Markey on Tuesday introduced the Senate version of the bicameral Equal Tax Act, a bill that would “create equal tax rates for all forms of income for individuals with incomes over $1 million.”
“The wealthiest individuals in our society use loopholes and tax dodging schemes to avoid paying their fair share,” Markey (D-Mass.) said in an introduction to the bill. “They get away with it because our tax code rewards wealth over work—giving breaks to those that trade stocks over those that punch clocks.”
The legislation—which was first introduced in the House of Representatives last year by Rep. Delia Ramirez (D-Ill.)—seeks to make the tax code more fair by making billionaires and multimillionaires pay income tax on passive investments, as if they earned their money through labor, by raising the top marginal rate from the current 20% to 37%.
Right now, billionaires can pay less in taxes on their stock trades than teachers or nurses that educate our children and care for us in emergencies. My Equal Tax Act would stop rewarding wealth more than work by making the ultra-wealthy pay taxes like millions of working people.
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— Senator Ed Markey (@markey.senate.gov) March 17, 2026 at 2:54 PM
Specifically, the Equal Tax Act would:
- Limit the lower preferential tax rate for long-term capital gains and dividends to incomes under $1 million;
- End the stepped-up basis loophole and disrupt the “buy, borrow, die” strategy used by the wealthy to avoid taxation by treating capital gains as realized at the time of gift or death, with exclusion allowances of up to $1 million in gains;
- Enact a lifetime limit of $1 million on the use of like-kind exchanges on real estate gains; and
- Limit the pass-through deduction to incomes under $1 million.
Markey’s office said Tuesday that, if passed, the Equal Tax Act would raise an estimated $300 billion in revenue over 10 years.
“Teachers, nurses, and millions of working people are the ones who keep our country running, but our tax code rewards wealth over work,” said Markey. “The Equal Tax Act brings fairness to our tax code by requiring millionaires and billionaires to pay taxes on investment income the same way working people pay taxes on income from their labor.”
Ramirez noted how plutocrats like President Donald Trump and tech titans Elon Musk, Jeff Bezos, and Mark Zuckerberg “have extorted tax benefits from the American people.”
“For far too long, they have exploited an unfair tax system that makes the rich richer at the expense of working families,” the congresswoman added. “It is time we ensure that the ultrawealthy pay their fair share. I am excited to work with Sen. Markey in the bicameral introduction of the Equal Tax Act to build a fairer tax system that ensures working families have everything they need to thrive.”
Morris Pearl, chair of the fair taxation advocacy group Patriotic Millionaires, said in a statement, “For decades, we have been playing a game of economic Jenga where we pull from the bottom and the middle, load it all on top, and then wonder why the whole thing is about to fall down."
“We end up with an unfair system that allows for oligarchic wealth to concentrate in the hands of a few individuals,” Pearl continued. “That’s because right now in America, our tax code makes people who have jobs and work for a living pay far higher tax rates than people who make money from investments or inheritances.”
“The money that investors like me make passively from our wealth should not be taxed any less than the money millions of Americans make through their sweat,” he asserted. “By closing major loopholes, the Equal Tax Act would ensure that the ultrarich pay income taxes just like all Americans who work for a living and have taxes deducted from their paychecks every week.”
“The Patriotic Millionaires are thrilled to see Sen. Markey take this important step forward in reducing historic, extreme, and democracy-destabilizing levels of economic inequality in America,” Pearl added.
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