Economic Competitiveness and Growth Act

Economic Competitiveness and Growth Act - Amends the Internal Revenue Code to establish a 50 percent capital gains deduction from gross income (with a computation provision for estate and trust purposes). Makes related Code changes in the areas of: (1) itemized deductions; (2) accounting methods; (3) exempt organizations; (4) estates and trusts; (5) insurance companies; (6) regulated investment companies and shareholders; (7) investment trusts; (8) aliens and foreign corporations; (9) non-U.S. income; (10) capital losses; (11) S corporations; (12) farmers' cooperatives; (13) self-employment income; and (14) the merchant marine (including amendments to the Merchant Marine Act of 1936).

(Sec. 3) Amends the provision regarding exclusion of gain from the sale of qualifying small business stock to: (1) increase the exclusion; (2) reduce the holding period; (3) make corporations eligible; (4) increase the size of qualifying businesses, and provide for inflation adjustments; (5) eliminate the per-issuer limitation; and (6) revise the working capital limitation.

(Sec. 4) Provides for the rollover of gain from the sale of qualified small business stock to another qualified small business stock.

(Sec. 5) Provides for the indexing of certain capital assets acquired (or held and used in the case of a personal residence) after December 30, 1996, for purposes of gain or loss determinations.