A bill to amend chapters 2 and 21 of the Internal Revenue Code of 1954 and title II of the Social Security Act to improve the financing of the social security programs by adjusting old-age, survivors, and disability insurance and hospital insurance tax rates, increasing the allocations for disability insurance purposes, repealing the recently-enacted statutory increases in the contribution and benefit base, and permitting the two Old-Age, Survivors, and Disability Insurance Trust Funds to borrow from each other when necessary to make benefit payments and continue full operation.

Amends the Internal Revenue Code to adjust the social security tax rates established by the Social Security Amendments of 1977. Increases, through and past the year 2009, the rate of tax on wages received by employees and paid by employers. Decreases the rate of tax on self employment income for the purposes of Title II (Old-Age, Survivors, and Disability Insurance) of the Social Security Act. Decreases such rates on employers', employees', and self-employment income for the purposes of the Hospital Insurance Program.

Amends such Title II to increase allocations of employment income and decrease allocations of self- employment income from the Treasury to the Federal Disability Insurance Trust Fund. Extends allocation percentages through and past the year 2009.

Repeals the yearly increases in the contribution and benefit base enacted by the Social Security Amendments of 1977 for purposes of the Old-Age, Survivors, and Disability Insurance program.

Permits mutual borrowing by the Federal Old-Age, Survivors Trust Fund and the Federal Disability Insurance Trust Fund to insure prompt payment of benefits and the full operation of such Fund.