A bill to amend the Internal Revenue Code of 1954 and title II of the Social Security Act to provide a full exemption (through credit or refund) from the employees' tax under the Federal Insurance Contributions Act, and an equivalent reduction in the self-employment tax, in the case of individuals who have attained age 65.

Amends the Internal Revenue Code and the Social Security Act to exempt employees over age 65 from taxation under the Federal Insurance Contributions Act (FICA). Exempt self-employed individuals over age 65 from FICA taxation for hospital insurance. Reduces old age, survivors, and disability insurance taxation on self-employed individuals over age 65 to a two percent rate.