 The President 's Advisory Panel for Federal Tax Reform cited the rebate as one of their chief concerns when analyzing their national sales tax , stating that it would be the largest entitlement program in American history , and contending that it would " make most American families dependent on monthly checks from the federal government " . Estimated by the advisory panel at approximately $ 600 billion , " the Prebate program would cost more than all budgeted spending in 2006 on the Departments of Agriculture , Commerce , Defense , Education , Energy , Homeland Security , Housing and Urban Development , and Interior combined . " Proponents point out that income tax deductions , tax preferences , loopholes , credits , etc. under the current system was estimated at $ 945 billion by the Joint Committee on Taxation . They argue this is $ 456 billion more than the FairTax " entitlement " ( tax refund ) would spend to cover each person 's tax expenses up to the poverty level . In addition , it was estimated for 2005 that the Internal Revenue Service was already sending out $ 270 billion in refund checks . 
