and 834(b)(1)(D) are each amended by striking sec. 1201 and following, . (J) Section 852(b)(3)(A) is amended by striking section 1201(a) and inserting section 11(b) . (K) Section 857(b)(3) is amended— (i) by striking subparagraph (A) and redesignating subparagraphs (B) through (F) as subparagraphs (A) through (E), respectively, (ii) in subparagraph (C), as so redesignated— (I) by striking subparagraph (A)(ii) in clause (i) thereof and inserting paragraph (1) , (II) by striking the tax imposed by subparagraph (A)(ii) in clauses (ii) and (iv) thereof and inserting the tax imposed by paragraph (1) on undistributed capital gain , (iii) in subparagraph (E), as so redesignated, by striking subparagraph (B) or (D) and inserting subparagraph (A) or (C) , and (iv) by adding at the end the following new subparagraph: (F) Undistributed capital gain For purposes of this paragraph, the term undistributed capital gain means the excess of the net capital gain over the deduction for dividends paid (as defined in section 561) determined with reference to capital gain dividends only. . (L) Section 882(a)(1), as amended by section 12001, is amended by striking or 1201(a) . (M) Section 904(b) is amended— (i) by striking or 1201(a) in paragraph (2)(C), (ii) by striking paragraph (3)(D) and inserting the following: (D) Capital gain rate differential There is a capital gain rate differential for any year if subsection (h) of section 1 applies to such taxable year. , and (iii) by striking paragraph (3)(E) and inserting the following: (E) Rate differential portion The rate differential portion of foreign source net capital gain, net capital gain, or the excess of net capital gain from sources within the United States over net capital gain, as the case may be, is the same proportion of such amount as— (i) the excess of— (I) the highest rate of tax set forth in subsection (a), (b), (c), (d), or (e) of section 1 (whichever applies), over (II) the alternative rate of tax determined under section 1(h), bears to (ii) that rate referred to in