A bill to amend the Internal Revenue Code of 1954 to provide a partial exclusion for dividends and interest received and to eliminate the deduction for consumer interest paid or accrued.

Amends the Internal Revenue Code to repeal the exclusion from gross income of interest received by a taxpayer which was to take effect in 1985. Replaces such exclusion with a limited exclusion from gross income of interest and dividends received by a taxpayer after 1982. Limits such exclusion to 25 percent of the lesser of $2,000 ($4,000 for joint returns) or the net interest and dividend income of the taxpayer.

Provides special rules for such exclusion for regulated investment companies and real estate investment trusts.

Restricts the income tax deduction for interest paid by a taxpayer to interest paid on: (1) acquiring, constructing, or rehabilitating property used as a dwelling unit; (2) acquiring a passenger automobile; (3) carrying on a trade or business; (4) higher education expenses; or (5) certain investments.

Limits such deduction to a specified percentage of interest paid in taxable years 1982 through 1984.