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] 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.…