A bill to amend the Social Security Act and the Internal Revenue Code of 1954 to provide for Federal participation in the costs of the social security program, with a substantial increase in the contribution and benefit base and with appropriate reductions in social security taxes to reflect the Federal Government's participation in such costs.

Reduces the rate of tax imposed under the Internal Revenue Code of 1954 on employees, employers, and the self-employed for the payment of the cost of the old-age, survivors, and disability insurance and the hospital insurance programs of the Social Security Act.

Increases by 50 percent the annual Federal contribution to the Federal Old-Age and Survivors Insurance Trust Fund in order to provide that one-third of the costs of the old-age, survivors, and disability insurance program shall be borne by the Federal Government.

Increases the amount of an employee's wages or of the income of a self-employed person which will be subject to the social security withholding tax.