Corporate Raider Tax Act of 1987

Corporate Raider Tax Act of 1987 - Amends the Internal Revenue Code to impose a 50 percent excise tax on gain realized by greenmail recipients. Defines "greenmail" as any amount paid or incurred by a corporation in a direct or indirect redemption of its stock from any shareholder if: (1) the shareholder held such stock for less than two years; and (2) during the two-year period ending on the date of redemption the shareholder, a person acting in concert with the shareholder, or a person related to either made or threatened to make a public tender offer for stock of the corporation. Imposes the tax regardless of whether gain is actually realized. Disallows an income tax deduction for payment of the tax.

Requires that a hostile stock purchase in a corporate takeover attempt be treated as an asset acquisition by the purchasing corporation.

Disallows an income tax deduction for any interest on indebtedness incurred or continued by a purchasing shareholder to purchase or carry corporate stock or assets acquired through a hostile purchase.