Congresswoman Ramirez Introduces Legislation to Tax the Rich

WASHINGTON, DC - Today, Congresswoman Delia C. Ramirez (IL-03)and members of the Patriotic Millionaires announced the introduction of the Equal Tax Act, a landmark piece of legislation that makes the tax code more equitable. The legislation taxes investment income at the same rate as labor income. The bill also closes other common loopholes used by the wealthy to avoid paying their fair share.

The Equal Tax Act would ensure that millionaires and billionaires, who earn most of their money passively through investments, pay the same tax rates as newspaper reporters, dental hygienists, and auto mechanics. This legislation would take an important step in reducing historic, extreme, and democracy-destabilizing levels of economic inequality in America.

"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. My Equal Tax Act is a first step in building a fairer tax system that ensures working families have everything they need to thrive," said Congresswoman Delia C. Ramirez (IL-03).

"For as long as I can remember, politicians and pundits have said that investors like me need lower tax rates as incentives to invest and grow the economy. They are and have been completely and utterly wrong. Even if the top income tax rate rises to 99% some day, I will always receive a greater return by investing than I would by doing the alternative: stuffing my money under my mattress. Mattresses do not provide very high returns," said Morris Pearl, the Chair of Patriotic Millionaires and a former Managing Director at BlackRock.

"Money is money is money is money, whether you earn it by pressing a button on your phone to sell stock while drinking a daiquiri on the beach or whether you earn it working an overnight shift in the emergency room. 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. I'm thrilled to see Rep. Ramirez introduce this bill to correct this blatant injustice in our tax code and to take an important step forward in the fight for tax fairness in America."

Among other things, 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
• Limit the pass-through deduction to incomes under $1 million

This bill includes protections for family farms and small businesses.

The legislation is also co-sponsored by Representatives Chuy García (IL-04), Pramila Jayapal (WA-07), Yassamin Ansari (AZ-03), Rashida Tlaib (MI-12), Shri Thanedar (MI-13), Ilhan Omar (MN-05), Chris Deluzio (PA-17), and Bonnie Watson Coleman (NJ-12).

Other allied organizations in support of the Equal Tax Act include Indivisible; 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; and National Association of Social Workers.

For more information about the Equal Tax Act, access a one-pager about the bill HERE.

To access the full text of the legislation, CLICK HERE.

To watch a live stream of the press conference, CLICK HERE.

For photos of the press conference, CLICK HERE.