Capital Gains Tax Simplification Act of 1998

Capital Gains Tax Simplification Act of 1998 - Amends the Internal Revenue Code to provide that, if for any taxable year a non-corporate taxpayer has a net capital gain, 38 percent of such gain shall be a deduction from gross income regardless of whether or not the taxpayer itemizes other deductions. Makes such deduction inapplicable to the alternative minimum tax. Revises provisions concerning the maximum and the regular tax on net capital gain for purposes of the alternative minimum tax.

Repeals the tax preference for exclusion for gains on the sale of certain small business stock.

Treats, as a general rule, any gain or loss from the sale or exchange of a collectible as a short-term gain or loss without regard to the period the asset was held.

Amends the Taxpayer Relief Act of 1997, with respect to maximum capital gains rates for individuals, to repeal the allowance of an election to recognize gain on assets held on January 1, 2001.