Capital Gains and Dividend Income Reform Act of 1998

Capital Gains and Dividend Income Reform Act of 1998 - Amends the Internal Revenue Code to revise rules concerning capital gain for taxpayers other than corporations to establish a new general rule which provides that if for any taxable year a taxpayer other than a corporation has a capital gain, 70 percent of such gain shall be a deduction from gross income.

Reduces the alternative capital gain tax for corporations.

Excludes from individual gross income 70 percent of dividends received from a domestic corporation.