Tax Equalization Act of 1979

Tax Equalization Act of 1979 - Repeals the tax-exempt status of farmers' cooperatives and the special tax treatment of corporate cooperatives and their patrons.

Disallows an income tax deduction for patronage dividends paid by cooperative corporations. Defines a "cooperative corporation" as a corporation which: (1) calls itself a "cooperative" or "co-op"; (2) represents to any individual or group that their patronage will or may entitle them to patronage dividends or an equity interest in the cooperative's assets; or (3) is operated for the mutual benefit of persons or classes that deal with it.