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 with a substantial increase in the amount of an individual's annual earnings which may be counter for benefit and tax purposes.

Amends Title II (Old-Age, Survivors, and Disability Insurance) of the Social Security Act and the Internal Revenue Code to reduce tax rates below the level established by the Social Security Financing Amendments of 1977 or 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 $100,000 in 1979.