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 the self-employed, employees, and employers 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 the contribution and benefit base for tax determination purposes under the old-age, suriviors and disability insurance program.

Increases by 50 percent the annual Federal contribution to the Federal Old-Age and Survivors Insurance Trust Fund.