Senator Markey, Colleagues Introduce Equal Tax Act to Close Tax Loopholes for the Wealthy

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Washington (March 17, 2026) - Senator Edward J. Markey (D-Mass.), Ranking Member of the Health, Education, Labor, and Pensions (HELP) Subcommittee on Primary Health and Retirement Security, today introduced the Equal Tax Act, legislation that would put working people first and close tax loopholes for the wealthy. The bill would create equal tax rates for all forms of income for individuals with incomes over $1 million. Cosponsors in the Senate include Senators Bernie Sanders (I-Vt.), Cory Booker (D-N.J.), and Jeff Merkley (D-Ore.). The legislation was previously introduced in the House by Congresswoman Delia C. Ramirez (IL-03).

"Teachers, nurses and millions of working people are the ones who keep our country running, but our tax code rewards wealth over work," said Senator 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. I'm proud to work with Congresswoman Ramirez on this legislation that brings fairness to our tax code by rewarding work every bit as much as wealth."

"Over and over again, we have seen how Musk, Bezos, Zuckerberg, Trump, and other billionaires 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. It is time we ensure that the ultra-wealthy pay their fair share. I am excited to work with Senator 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," said Congresswoman Ramirez.

"It's time to unrig our broken tax system so that wealthy investors and shareholders start paying their fair share, just as millions of working Americans do every day," said Senator Booker. "This commonsense legislation is about restoring tax fairness by ending subsidizes for the wealthiest taxpayers and creating a fair economy where Americans who work for a living can start getting ahead again."

The legislation would prevent individuals with incomes over $1 million dollars from exploiting the lower preferential tax rate through:

• Limiting the lower preferential tax rate for long-term capital gains and dividends to incomes under $1 million
• Ending the stepped-up basis loophole and disrupting 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
• Enacting a lifetime limit of $1 million on the use of like-kind exchanges for real estate gains
• Limiting the pass-through deduction to incomes under $1 million
• Protecting family farms and small businesses

"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 oligarchic wealth to concentrate in the hands of a few individuals. 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 from our money should not be taxed any less than the money millions of Americans make through their sweat. Closing tax loopholes through provisions found in the Equal Tax Act would ensure that the ultra-rich 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 Senator Markey take an important step forward in reducing historic, extreme, and democracy-destabilizing levels of economic inequality in America," said Morris Pearl, Board Chair of Patriotic Millionaires.

"For far too long, our tax code has rewarded wealth over work. Nurses, teachers, and construction workers pay taxes on every paycheck, while billionaires can often pay lower rates because much of their income comes from capital gains and dividends. The Equal Tax Act takes an important step toward restoring fairness by ensuring that income from wealth is taxed more like income from work. By limiting special tax breaks for massive investment gains and closing loopholes like stepped-up basis this proposal helps build a tax system that works for working people, not just the wealthy few. The AFL-CIO supports efforts like Senator Markey's to make our tax code more just and to ensure everyone pays their fair share," said Jody Calemine, Director of Advocacy at the AFL-CIO.

"The federal tax system should be fair; it is not as wealth is routinely rewarded over work. This has been exacerbated by the current administration. We need to reverse these failed, trickle-down policies because handing the rich tax breaks benefits no one but the rich. The Equal Tax Act is a key piece of the puzzle, and we urge Congress to pass it," said Randi Weingarten, President of the American Federation of Teachers (AFT).

"Working people struggling to make ends meet should not be paying a higher tax rate than wealthy investors," said Lee Saunders, President of AFSCME. "For too long, billionaires have benefitted from a rigged tax system that lets them line their pockets at the expense of working families. The Equal Tax Act will ensure everyone pays their fair share to support the public services that keep our communities strong. I want to thank Senator Markey for introducing this critical legislation."

The Equal Tax Act is endorsed by the AFL-CIO; American Federation of Teachers; AFSCME; Responsible Wealth; Voices for Progress; Americans for Tax Fairness; Institute for Policy Studies, Global Economy Project; National Women's Law Center Action Fund; United for a Fair Economy; Coalition on Human Needs; Oxfam America; Public Advocacy for Kids (PAK); NETWORK Lobby for Catholic Social Justice; Equal Rights Advocates; Americans for Financial Reform; People's Action; Housing Action Illinois; Accountable.US; American Friends Service Committee; MomsRising; the National Association of Social Workers; and Patriotic Millionaires.

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