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

Amends the Internal Revenue Code to revise the method of calculating the deduction for capital gains of noncorporate taxpayers, allowing a deduction equal to: (1) 60 percent for assets held for three years or more; and (2) 40 percent for assets held for between one and three years.

Reduces from 34 percent to 28 percent the alternative tax rate on capital gains realized by a corporation.