 A 2007 study by the Beacon Hill Institute found that the FairTax would save $346.51 billion in administrative costs and would be a much more efficient taxation system from the point of view of the administration, collection, and filing costs.One additional "cost" more difficult to quantify is the cumulative cost of business decisions made, not in the interest of delivering more/better product and services, but rather in tax avoidance behaviors.An example might be the purchase of a small company with tremendous financial losses just to avoid corporate income tax on the larger, more profitable business.