 Proponents state the FairTax would reduce the number of tax filers by about 86 % ( from 100 million to 14 million ) and reduce the filing complexity to a simplified state sales tax form . The Government Accountability Office ( GAO ) , among others , have specifically identified the negative relationship between compliance costs and the number of focal points for collection . Under the FairTax , the federal government would be able to concentrate tax enforcement efforts on a single tax . Retailers would receive an administrative fee equal to the greater of $ 200 or 0 @.@ 25 % of the remitted tax as compensation for compliance costs . In addition , supporters state that the overwhelming majority of purchases occur in major retail outlets , which are very unlikely to evade the FairTax and risk losing their business licenses . Economic Census figures for 2002 show that 48 @.@ 5 % of merchandise sales are made by just 688 businesses ( " Big @-@ Box " retailers ) . 85 @.@ 7 % of all retail sales are made by 92 @,@ 334 businesses , which is 3 @.@ 6 % of American companies . In the service sector , approximately 80 % of sales are made by 1 @.@ 2 % of U.S. businesses . 
