A bill to amend the Internal Revenue Code of 1986 to retain a capital gains tax differential, and for other purposes.

Repeals provisions of the Tax Reform Act of 1986 relating to the taxation of individual capital gains. Provides that the Internal Revenue Code shall be applied and administered as if such provisions had not been enacted.

Amends the Internal Revenue Code to revise the method of calculating the deduction for capital gains of noncorporate taxpayers. Allows a capital gains deduction equal to: (1) 80 percent for assets held eight years or longer; (2) 60 percent for assets held for between six and eight years; and (3) 40 percent for assets held for between four and six years.

Increases the holding period required for long-term capital gain tax treatment.