legislation adjusts Social Security benefits for changes in the price level, so a percentage increase in prices would result in an equal percentage increase to Social Security income. Supporters suggest these changes would offset paying the FairTax under transition conditions. In contrast to ordinary savings, money in tax-deferred savings plans such as IRA, 401k, etc. would be withdrawn tax-free. There is currently $11 trillion in such accounts. This represents future tax revenue owed to the federal government under the income tax system, which has been estimated at $3 trillion. This revenue would then fall under the FairTax system for collection. Income tax industry During the transition, many or most of the employees of the IRS (105,978 in 2005) would face loss of employment. The Beacon Hill Institute estimate is that the federal government would be able to cut $8 billion from the IRS budget of $11.01 billion (in 2007), reducing the size of federal tax administration by 73%. In addition, income tax preparers (many seasonal), tax lawyers, tax compliance staff in medium-to-large businesses, and software companies which sell tax preparation software (such as Drake Software, TaxCut, and TurboTax), could face significant drops, changes, or loss of employment. Proponents state the income tax industry often provides year-round services for financial planning and investment, which is expected to increase under the FairTax proposal and could offset some of these changes. New technologies used by the IRS, such as e-filing, are simplifying the process and already threatening a portion of this industry as goals set by Congress call for at least 80% of federal returns to be submitted electronically by 2007. According to IRS testimony from 2004, 45% of revenue agents and officers would become eligible for retirement in the following 5 years and there is concern about the loss of their work force as their hiring efforts struggle to keep pace with attrition. In addition, the IRS would not go completely out of commission until 3 years after the FairTax was enacted, providing employees time to find other employment. Proponents claim the projected 10.5% growth in the economy during the first year of the FairTax would provide plenty of new jobs to these workers that are typically well educated and well equipped with transferable skills (see creative destruction). Time arbitrage In the period before the FairTax was implemented, there could be a strong incentive for individuals to buy goods without the sales