To amend the Internal Revenue Code of 1986 to reduce the capital gains tax on individuals and to index the basis of assets of individuals for purposes of determining gains and losses.

Amends the Internal Revenue Code to revise the maximum capital gains tax rate so that if a taxpayer has a net capital gain, the tax shall not exceed the sum of: (1) a tax computed at the rates and in the same manner as if this provision had not been enacted on taxable income reduced by the net capital gain, plus; (2) a tax equal to the applicable percentage of the net capital gain or, if less, taxable income. Sets the applicable percentage at 20 percent for 1997 and reduces it, by one percent annually, to zero for 2017 and beyond.

Provides for the indexing of certain assets for the purposes of determining gain or loss.