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 old-age, survivors, and disability insurance program and the medicare program, with appropriate reductions in social security taxes to reflect such participation, and without any ceiling on the amount of an individual's annual earnings which may be counted for benefit and tax purposes.

Amends Title II (Old-Age, Survivors, and Disability Insurance) of the Social Security Act and the Internal Revenue Code of 1954 to reduce tax rates below their present level on employment income for both employers and employees and on self-employment income.

Increases Federal contributions to the Federal Old- Age and Survivors Insurance Trust Fund and the Federal Hospital Insurance Trust Fund established under Title XVIII (Medicare) of the Social Security Act by 50 percent.

Increases the ceiling on the amount of income that is subject to social security taxation to $17,700 by 1978.

Requires the Secretary of Health, Education, and Welfare, in consultation with the Secretary of the Treasury, to submit to the Congress a detailed proposal for benefit computation changes of the primary insurance amount under Title II of the Social Security Act.