A bill to amend the Social Security Act and the Internal Revenue Code of 1954 to provide that the taxes presently imposed for medicare purposes shall be added to the taxes imposed for purposes of the OASDI program to assist in financing such program, and to provide that the medicare program shall hereafter be financed from general revenues rather than through such taxes.

Amends the Internal Revenue Code of 1954 to repeal the hospital insurance tax levied on self-employment income, wages earned by employees, and wages paid by employers.

Increases the rate of the Old-Age, Survivors, and Disability Insurance tax on wages and self-employment income. Sets forth a schedule of such increases between 1977 and 1986.

Amends Title XVIII (Medicare) of the Social Security Act to end the funding of the Hospital Insurance Trust Fund from the hospital insurance tax, and to provide that such Trust Fund be financed from general revenues.