A bill to amend the Internal Revenue Code of 1986 to reduce the maximum capital gains rates, to index capital assets for inflation, and to repeal the Federal estate and gift taxes and the tax on generation-skipping transfers.

Amends the Internal Revenue Code to revise capital gains rates for corporate and noncorporate taxpayers.

(Sec. 2) Substitutes the indexed basis (inflation-increased adjusted basis) for the adjusted basis with respect to gain and loss of disposed indexed assets (corporate stock and tangible capital assets or business property) held for more than one year. Sets forth related provisions with respect to: (1) certain conduit entities; (2) related party dispositions; and (3) transfers to increase indexing adjustment or depreciation allowance.

(Sec. 3) Repeals certain Federal transfer taxes with respect to the estates of persons dying, and gifts and generation-skipping transfers made, after enactment of this Act.