 Social Security benefits would be adjusted for any price changes due to FairTax implementation . The Beacon Hill Institute states that it would not matter , apart from transition issues , whether prices fall or rise — the relative tax burden and tax rate remains the same . Decreases in production cost would not fully apply to imported products ; so according to proponents , it would provide tax advantages for domestic production and increase U.S. competitiveness in global trade ( see Border adjustability ) . To ease the transition , U.S. retailers will receive a tax credit equal to the FairTax on their inventory to allow for quick cost reduction . Retailers would also receive an administrative fee equal to the greater of $ 200 or 0 @.@ 25 % of the remitted tax as compensation for compliance costs , which amounts to around $ 5 billion . 
