Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to repeal the increases for 1981 and 1982 in the…

Official title: A bill to amend titles II and XVIII of the Social Security Act and chapters 2 and 21 of the Internal Revenue Code of 1954 to restore the long-range soundness of the old-age, survivors, and disability insurance system, to eliminate increases in the earnings base for 1981-1982 (leaving such base subject to annual adjustment after 1982 as under prior law, to provide mandatory social security coverage for Federal employees, to establish a working spouse's benefit, to make appropriate adjustments in social security tax rates (generally lowering the OASDI -HI rate through this century) and in Disability Insurance Trust Fund allocations, and to provide for partial financing of the Hospital Insurance program from general revenues.

Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to repeal the increases for 1981 and 1982 in the contribution and benefit base from which the social security taxes of an individual are taken. Amends the Internal Revenue Code to increase the old age, survivors and disability insurance tax rates on employees, employers, and self-employment income and decrease the hospital insurance tax rates on employees, employers, and self-employment income. Revises the allocations of wages and self-employment income from the Treasury to the Federal Disability Insurance Trust Fund for taxable years after 1980. Amends title II of the Social Security Act and the Internal Revenue Code to include Federal employees within the coverage of the Social Security system. Establishes a "working spouse's benefit" under title II. Provides that any individual who receives both old-age benefits or a disability insurance benefit and wife's, husband's, widow's, widower's, or mother's insurance benefits shall be entitled to such working spouse's benefit. States that such benefit shall be a percentage of the smaller of the two benefits to which the recipient was entitled. Limits the receipt of such benefits to one member of a married couple when both members are eligible. Increases by 100 percent, for taxable years beginning after 1980, allocations of wages and self- employment income from the Treasury to the Federal Hospital Insurance Trust Fund.