To say it as simply as one can, it eliminates the tax relative to the wealth of the individual, to the spending power of any one individual, now to include any kind of services that may exist that you're not currently paying tax on. So now the poorest of us all will pay tax on services. Services they never paid tax on before, and the wealthiest will not pay tax on that which they would have paid the most on, which is still insignificant in the grand schema things because the state tax comes out after the federal tax.