Under the plan 401k portfolios would rise in value significantly with a corporate tax rate of 9% and the elimination of the capital gains tax. The cost of goods and services would also fall with the elimination of the payroll tax.
As for fair, the SS administration says it will be insolvent before I retire, making my rate of return on contributions $0.
A booming economy will do more to save SS than the current tax code would ever do. Retirees should be more concerned about that instead of buying new goods and services. It also sounds as if “empowerment zones” would potentially buffer the impact on retirees.
One, we have made some profit in the past but have never regained the 2007 values. Two, "likely" has a long history of unreliability. If I were trying to push the ultimate success of Cain's plan I wouldn't want to make that argument.