"Consider that 2018 is the year when social security obligations begin to exceed collections. The number of income earners paying social security taxes and contributing to 401k/mutual funds/stocks will be less than the number of retirees extracting benefits.
The impact of the changing income earner vs retiree demographic is going to eclipse the problem of how taxes are collected. It is just rearranging the deck chairs on the Titanic."
Incorrect. The number of income earners vs retirees, which is the central problem of Social Security, is addressed by the FairTax by converting the revenue base of Social Security from payroll to a more broad-based general sales tax. Therefore, if we double the size of the US economy over the next 15 years, as Tom Delay has suggested as a goal, then we double the Social Security revenue base. There is no way that we do that with a payroll tax base.
Therefore, contrary to your assertion that Fundamental Tax Reform is peripheral to the problem of Social Security's insolvency, it is indeed a major step toward addressing that exact issue.
You've identifed the fly in the ointment. Success is predicated on doubling the economy in 15 years. I expect the opposite. 75 million baby boomers with high paying jobs will retire. Instead of putting (tax deferred) income in the stock market, they will remove it (as required by law) to cover living expenses. Most will find their retirement resources inadequately funded. They will spend only what is necessary to get by.
It's almost laughable to think that taxing retirees to extract money to pay them social security benefits is a workable approach. It is cow sucking its own udder to survive. Money to cover such obligations must be acquired by a wealth transfer (taxation) from employed persons to retired recipients. The ratio of employed persons with disposable income to retirees expecting benefits is going to drop radically in about 10 years. Socialism and ponzi schemes never work as intended.