in the fair tax book which explains the proposed system, they explain that the initial rate is designed to be revenue neutral.
What I proposed is "revenue neutral" to the government as well. What Fair Tax does is link the tax to government spending, but I haven't seen it link the payout to inflation. I'm stating that the prebate should be linked to a livable payout, adjusted by inflation. And, like the Fair Tax, the tax rate should then be used to balance the budget. Though I'd go father and prohibit deficit spending, and instead adjust the taxes to cover spending increases.
Though I'd expect that it would make recessions worse, as when the economy gets worse, the taxes would go up (as consumer spending would go down, and government spending would go up). But that's a problem with Fair Tax as well.