A bill to amend the Internal Revenue Code of 1986 to provide for the indexing of certain assets, to restore a capital gains tax differential for small business stock, and for other purposes.

Title I: Indexation of Certain Capital Assets - Requires indexing, based on the gross national product deflator, of the adjusted basis of certain assets (corporate stock and tangible property that is a capital asset of property used in a trade or business) that have been held for more than one year at the time of sale or other transfer, solely for the purpose of determining gain or loss.

Title II: Restoration of Capital Gains Exclusion for Small Business Stock - Permits noncorporate taxpayers an income tax deduction of 33 percent of the gain from an investment in the stock of a small business whose outstanding stock is valued at less than $100,000,000. Allows the deduction only if the taxpayer is the initial acquirer of the particular stock and holds the stock for at least four years.

Allows corporate taxpayers an income tax deduction of 33 percent of the qualified small business net capital gain. Revises the computation of the alternative tax for corporations to include 23 percent of such gain.

Limits the maximum marginal tax rate on the income from such investments to 21 percent for individual taxpayers.

Adds the amount of the deduction for capital gain from such investments as a tax preference item for purposes of determining alternative minimum tax liability.