A bill to amend the Internal Revenue Code of 1986 to promote savings and long-term investment through a reduced capital gains tax rate and individual retirement plus accounts.

Title I: Capital Gains Provisions - Subtitle A: Reduction in Capital Gains Tax - Amends the Internal Revenue Code to reduce the capital gains tax for noncorporate taxpayers. Establishes a scale for determining such deduction up to a maximum of 35 percent after owning assets for seven years. Provides for not taking into account net capital gain under the phaseout of the 15-percent rate and personal exemptions. Provides for recapturing the gain from disposition of certain depreciable property.

Subtitle B: Alternative Capital Gains Rate for Corporations - Reduces the alternative capital gains tax for corporations by establishing a scale for determining such tax rate based on ownership of assets for three to 15 years.

Subtitle C: Indexing of Certain Assets for Purposes of Determining Gain - Provides for indexing assets held for more than two years as an option for individuals who elect not to take advantage of the lower capital gains rate.

Title II: Individual Retirement Plus Accounts - Allows individuals to establish individual retirement plus accounts with tax treatment similar to that for individual retirement plans. Makes contributions to such accounts nondeductible.

Provides for qualified distributions from such accounts, other than for general retirement purposes, including special purposes distributions made for the purchase of a first home and for medical or educational purposes. Prohibits special purpose distributions from being made during the first five years of the account.