To amend the Internal Revenue Code of 1986 to impose a tax on income and gains from providing leveraged buyout and other financing to certain businesses.

Amends the Internal Revenue Code to impose a tax on the income earned by a small business investment company from a disqualified investment in any small business concern whose amount of cash and aggregate adjusted tax bases of other property immediately after the investment (and taking into account the investment proceeds) exceeds $10,000,000. Disqualifies any other investment not permitted under the Small Business Investment Company Act of 1958. Describes the financial arrangements which determine a disqualified investment.