Capital Gains Restoration Act of 1988

Capital Gains Restoration Act of 1988 - Repeals provisions of the Tax Reform Act of 1986 relating to the taxation of both individual and corporate capital gains. Provides that the Internal Revenue Code shall be applied and administered as if such provisions had not been enacted. (The capital gains tax rate for corporations would generally be 28 percent.)

Amends the Internal Revenue Code to increase the holding period required for long-term capital gain tax treatment of property acquired after June 22, 1984, and before January 1, 1988.

Revises the method of calculating the income tax deduction for capital gains of noncorporate taxpayers. Allows a deduction equal to: (1) 25 percent for assets held for between two and five years; and (2) 50 percent for assets held for five years or longer.

Decreases the rate of the alternative tax on capital gains realized by corporations from 34 percent to: (1) 27 percent for assets held for between two and five years; and (2) 20 percent for assets held for five years or longer.