I rather suspect that fewer people would learn how to read or write. Just look at some third world countries for starters. But I half believe that the wealthy (the people who would most benefit from a fair tax, wouldn't mind that though.
But in third world countries most adults don't know how to read and write to begin with. Here in the US almost the entire population is literate. If tax funded education ended tomorrow I would hope that parents would care enough to teach their kids how to read and write, along with many other things. If not the parents then some other person or private schools.