A bill to amend the Internal Revenue Code of 1986 to discourage short-term investments by pension plans and welfare benefit funds by taxing capital gains from such investments.

Amends the Internal Revenue Code to impose a tax on certain capital gains of: (1) qualified trusts that are part of an employer stock bonus, pension, or profit-sharing plan; and (2) welfare benefit funds that are part of an employer plan through which benefits are provided to employees or their beneficiaries. Taxes the lesser of the capital gain net income or the capital gain net income with respect to assets held for five years or less. Determines the amount of tax liability by applying rates inversely proportional to the length of time the asset is held, with the maximum rate (28 percent) applicable to short-term gains (assets held for six months or less).