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.

Amends the Internal Revenue Code of 1954 to establish lower tax rates on employees, employers, and the self-employed for purposes of old-age, survivors and disability insurance after fiscal year 1977.

Decreases the tax rate on self-employment, employee, and employer income for purposes of hospital insurance.

Amends title II (Old-Age, Survivors and Disability Insurance) in order to provide that one- third of the costs of the program shall hereafter be borne by the Federal Government.

Increases the earnings counted for benefit and tax purposes.