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.

[AI summary unavailable — showing source text] Reduces the rate of tax imposed under the Internal Revenue Code of 1954 on employees, employers, and the self-employed for the payment of the cost of the old-age, survivors, and disability insurance and the hospital insurance programs of the Social Security Act. Increases by 50 percent the annual Federal contribution to the Federal Old-Age and Survivors Insurance Trust Fund in order to provide that one-third of the costs of the old-age, survivors, and disability insurance program shall be borne by the Federal Government. Increases the amount of an employee's wages or of the income of a self-employed person which will be subject to the social security withholding tax.…