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The Tax Rate is Revenue Neutral
The tax rate is revenue neutral - at the level necessary to replace revenue generated by the repealed taxes.
The money coming in is generated by goods purchased - states collect the tax and charge the government 1% to process and pay them monthly on the tax rate determined to be revenue neutral - this rate could adjust over time depending on the revenue generated.
Social Security, Medicare and other programs would still be funded with these monies.
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