So does the VA rating percent bring down the taxes from the medical retirement?Anthony,
The only way you would receive both VA pay and Military retirement are if you have 20+ years in, eligible for retirement under TERA, or injuries are combat related. You mentioned the injuries not being sustained in a combat zone. It sounds likely you will not be entitled to any type of concurrent receipt. Therefore, you would receive the higher of the two; receive VA or DoD. DFAS will automatically pay you the higher of the two. Keep in mind you need to do a dependency claim with the VA for your family members.
If you are unemployable file for Social Security(SSDI) for both you and your children. This should bring in a large extra chunk of change. Also, you can apply for TDIU through the VA to be compensated at the 100% level even if rated lower.