In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. CAPITAL GAINS DEDUCTION.

(a) General Rule.--Part I of subchapter P of chapter 1 of the
Internal Revenue Code of 1986 (relating to treatment of capital gains)
is amended to read as follows:

''PART I--TREATMENT OF CAPITAL GAINS

''Sec. 1201. Capital gains deduction.

''SEC. 1201. CAPITAL GAINS DEDUCTION.

''(a) General Rule.--If for any taxable year a taxpayer has a net
capital gain, 30 percent of such gain shall be a deduction from gross
income.
''(b) Estate and Trusts.--In the case of an estate or trust, the
deduction shall be computed by excluding the portion (if any) of the
gains for the taxable year from sales or exchanges of capital assets
which, under sections 652 and 662 (relating to inclusions of amounts in
gross income of beneficiaries of trusts), is includible by the income
beneficiaries as gain derived from the sale or exchange of capital
assets.
''(c) Transitional Rule.--In the case of a taxable year in which
the date of the enactment of this sentence occurs, the amount taken
into account as the net capital gain under subsection (a) shall not
exceed the net capital gain determined by only taking into account
gains and losses properly taken into account for the portion of the
taxable year after such date of enactment.''
(b) Deduction Allowable in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by inserting after
paragraph (13) the following new paragraph:
''(14) Long-term capital gains.--The deduction allowed by
section 1201.''
(c) Technical and Conforming Changes.--
(1) Section 1 of such Code is amended by striking
subsection (j).
(2) Paragraph (1) of section 170(e) of such Code is amended
by striking ''the amount of gain'' in the material following
subparagraph (B)(ii) and inserting ''50 percent of the amount
of gain''.
(3)(A) Paragraph (2) of section 172(d) of such Code is
amended to read as follows:
''(2) Capital gains and losses.--
''(A) Losses of taxpayers other than
corporations.--In the case of a taxpayer other than a
corporation, the amount deductible on account of losses
from sales or exchanges of capital assets shall not
exceed the amount includible on account of gains from
sales or exchanges of capital assets.
''(B) Deduction under section 1201.--The deduction
under section 1201 shall not be allowed.''
(B) Subparagraph (B) of section 172(d)(4) of such Code is
amended by striking ''paragraphs (1) and (3)'' and inserting
''paragraphs (1), (2)(B), and (3)''.
(4) Paragraph (4) of section 642(c) of such Code is amended
to read as follows:
''(4) Adjustments.--To the extent that the amount otherwise
allowable as a deduction under this subsection consists of gain
from the sale or exchange of capital assets held for more than
1 year, proper adjustment shall be made for any deduction
allowable to the estate or trust under section 1201 (relating
to deduction for excess of capital gains over capital losses).
In the case of a trust, the deduction allowed by this
subsection shall be subject to section 681 (relating to
unrelated business income).''
(5) Paragraph (3) of section 643(a) of such Code is amended
by adding at the end thereof the following new sentence: ''The
deduction under section 1201 (relating to deduction of excess
of capital gains over capital losses) shall not be taken into
account.''
(6) Paragraph (4) of section 691(c) of such Code is amended
by striking ''sections 1(j), 1201, and 1211'' and inserting
''sections 1201 and 1211''.
(7) The second sentence of section 871(a)(2) of such Code
is amended by inserting ''such gains and losses shall be
determined without regard to section 1201 (relating to
deduction for capital gains) and'' after ''except that''.
(8)(A) Subsection (b) of section 1211 of such Code is
amended by striking ''the lower of'' and all that follows down
through the period at the end thereof and inserting ''whichever
of the following is the smallest--
''(1) $3,000 ($1,500 in the case of a married individual
filing a separate return),
''(2) the excess of such losses over such gains, or
''(3) the sum of--
''(A) the excess of the net short-term capital loss
over the net long-term capital gain, and
''(B) one-half of the excess of the net long-term
capital loss over the net short-term capital gain.''
(B) So much of paragraph (2) of section 1212(b) of such
Code as precedes subparagraph (B) thereof is amended to read as
follows:
''(2) Special rules.--
''(A) Adjustments.--
''(i) For purposes of determining the
excess referred to in paragraph (1)(A), there
shall be treated as short-term capital gain in
the taxable year an amount equal to the lesser
of--
''(I) the amount allowed for the
taxable year under paragraph (1), (2),
or (3) of section 1211(b), or
''(II) the adjusted taxable income
for such taxable year.
''(ii) For purposes of determining the
excess referred to in paragraph (1)(B), there
shall be treated as short-term capital gain in
the taxable year an amount equal to the lesser
of--
''(I) the sum of the amount allowed
for the taxable year under paragraph
(1), (2), or (3) of section 1211(b),
and the excess of the amount so allowed
over the net short-term capital loss
(determined without regard to this
subsection) for such year, or
''(II) the adjusted taxable income
for such taxable year.''
(C) Clause (i) of section 1211(b)(2)(B) of such Code is
amended by striking ''paragraph (1) or (2)'' and inserting
''paragraph (1), (2), or (3)''.
(D) In the case of a taxable year in which the date of the
enactment of this Act occurs, proper adjustments in the
application of the provisions amended by this paragraph shall
be made to take into account the provisions of section 1201(c)
of such Code (as amended by subsection (a)).
(9) Paragraph (1) of section 1402(i) of such Code is
amended by inserting '', and the deduction provided by section
1201 shall not apply'' before the period at the end thereof.
(10) Section 12 of such Code is amended by striking
paragraph (4) and redesignating the following paragraphs
accordingly.
(11) Paragraph (2) of section 527(b) of such Code is hereby
repealed.
(12) Paragraph (2) of section 801(a) of such Code is hereby
repealed.
(13) Subsection (c) of section 831(c) of such Code is
amended by striking paragraph (1) and redesignating the
following paragraphs accordingly.
(14)(A) Subparagraph (A) of section 852(b)(3) of such Code
is amended by striking '', determined as provided in section
1201(a), on'' and inserting ''of 17 percent of''.
(B) Clause (iii) of section 852(b)(3)(D) of such Code is
amended--
(i) by striking ''66 percent'' and inserting ''83
percent'', and
(ii) by striking ''section 1201(a)'' and inserting
''subparagraph (A)''.
(15) Clause (ii) of section 857(b)(3)(A) of such Code is
amended by striking ''determined at the rate provided in
section 1201(a) on'' and inserting ''of 17 percent of''.
(16) Paragraph (1) of section 882(a) of such Code is
amended by striking ''section 11, 55, or 1201(a)'' and
inserting ''section 11 or 55''.
(17) Subsection (b) of section 904 of such Code is amended
by striking paragraphs (2)(B), (3)(B), (3)(D), and (3)(E).
(18) Subsection (b) of section 1374 of such Code is amended
by striking paragraph (4).
(19) Subsection (b) of section 1381 is amended by striking
''or 1201''.
(20) Clause (i) of section 6425(c)(1)(A) of such Code is
amended by striking ''or 1201(a)''.
(21) Clause (i) of section 6655(g)(1)(A) of such Code is
amended by striking ''or 1201(a)''.
(22)(A) The second sentence of section 7518(g)(6)(A) of
such Code is amended--
(i) by striking ''during a taxable year to which
section 1(j) or 1201(a) applies'', and
(ii) by striking ''28 percent (34 percent'' and
inserting ''14 percent (17 percent''.
(B) The second sentence of section 607(h)(6)(A) of the
Merchant Marine Act, 1936 is amended--
(i) by striking ''during a taxable year to which
section 1(j) or 1201(a) of such Code applies'', and
(ii) by striking ''28 percent (34 percent'' and
inserting ''14 percent (17 percent''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act; except that the amendment made by subsection (c)(2) shall apply
only to contributions after such date of enactment.
Amends the Internal Revenue Code to allow a 30 percent income tax deduction for the net capital gain of both corporate and noncorporate taxpayers.