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 with respect to the taxation of both individual and corporate capital gains. Provides that the Internal Revenue Code (IRC) be applied and administered as if such provisions had not been enacted.

Amends the IRC to decrease the capital gains tax rate for corporations from 28 percent to 20 percent.

Amends the IRC to revise the method of calculating the deduction for capital gains of noncorporate taxpayers. Allows a capital gains deduction equal to: (1) 100 percent for assets held five years or longer; (2) 60 percent for assets held for between three and five years; and (3) 40 percent for assets held for between one and three years.

Amends the Deficit Reduction Act of 1984 to increase the holding period required for long-term capital gain tax treatment of property acquired after 1986.