 Under the FairTax , family households of lawful U.S. residents would be eligible to receive a " Family Consumption Allowance " ( FCA ) based on family size ( regardless of income ) that is equal to the estimated total FairTax paid on poverty level spending according to the poverty guidelines published by the U.S. Department of Health and Human Services . The FCA is a tax rebate ( known as a " <unk> " as it would be an advance ) paid in twelve monthly installments , adjusted for inflation . The rebate is meant to eliminate the taxation of household necessities and make the plan progressive . Households would register once a year with their sales tax administering authority , providing the names and social security numbers of each household member . The Social Security Administration would disburse the monthly rebate payments in the form of a paper check via U.S. Mail , an electronic funds transfer to a bank account , or a " smartcard " that can be used like a debit card . 
