A bill to amend the Social Security Act and the Internal Revenue Code of 1954 to provide (in two steps) for the financing of the hospital insurance program from general revenues rather than through the imposition of medicare taxes as at present, and to eliminate the special statutory increases in the earnings base which are presently scheduled for 1980 and 1981.

Amends the Internal Revenue Code and the Social Security Act to finance the hospital insurance program of title XVIII (Medicare) of the Social Security Act through general revenues rather than through employment and self-employment taxes.

Repeals the 1980 and 1981 increases in the contribution and benefit base (which is used in determining wages and self-employment income).