To amend the Internal Revenue Code of 1986 to index the basis of certain assets acquired on or after January 1, 1995, for purposes of determining gain, and for other purposes.

Amends the Internal Revenue Code to require indexing, based on the consumer price index, 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.

Declares that gain from the sale or disposition of an indexed asset held for more than one year shall not be taken into account for purposes of determining the amount allowed as a deduction for investment interest.

Provides for the recapture of the depreciation amount in the case of gain from the sale of an indexed asset.

Allows a taxpayer, other than a corporation that holds any readily tradable security on January 1, 1995, to treat such security as having been sold on the last business day before such date for an amount equal to its closing market price on such last business day (and as having been reacquired on such last business day for an amount equal to such closing market price).