 According to a 2005 report from the U.S. Government Accountability Office, the efficiency cost of the current tax system—the output that is lost over and above the tax itself—is between $240 billion and $600 billion every year.Supporters argue that the FairTax system would reduce these compliance and efficiency costs by 90% and return a larger share of that money to the productive economy.With the FairTax system, the cost of compliance would be built into the tax by allowing the business and the State to keep 1/4 of 1% of taxes collected.