 There are also concerns regarding the repeal of the Sixteenth Amendment, transition effects on after-tax savings, impact to the income tax industry, incentives on credit use, and the loss of tax advantages to state and local bonds.FairTax supporters assert that the proposal would make the cost of federal government highly visible as consumers would see most of this cost in a single tax paid every time they purchase a good or service.Under the current tax system, the federal government collects revenue through a wide variety of taxes on individuals and businesses.