Hey! Why are the shills still claiming 23% when the article says it's 28% ?
It's how you calculate it. If you use the same mechanism as calculating income taxes (in order to make a more equal comparison), you would say that on $100 total spent, 23% of that ($23) is the tax and 77% ($77) is the price without tax. This would correspond to saying that an effective income tax rate of 23% would be taking $23 out of every $100 earned.
The other way to calculate is based on how state sales taxes are usually figured. An item that is $77 before taxes would have a 29.87% (I'm not sure where the article comes up with 28%) tax of $23 added to it. It still totals the same $100.
The tax is 23% of the total, or 29.87% of the pre-tax price. Both work out exactly the same. As I said before, the first number is used to compare apples-to-apples with income taxes.
Hey! Why are the shills still claiming 23% when the article says it's 28% ?
By law the tax is generally remitted by the seller, 23% of total payment = 29.87% + retail price. Same amount either way it is figured.
The percentage is calculated from the perspective of the Seller who is held liable for the NRST under the legislation.
Secondly, we now pay 23% of gross income in income & payroll taxes, which are replaced by the 23% retail sales tax. Thus an apples to apples comparison is appropriate when comparing the two systems.
You would know that if you bothered to read and understand how the tax works.
H.R.25
SPONSOR: Rep Linder, John (introduced 01/7/2003)
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.