[kevkrom]

Under the NRST, if I buy an item that is listed at $10, how much cash do I give the sales person?

$10.

The sales person would then remit $2.30 of that to the government as sales tax receipts.

[Principled]

So since $2.30 of the $10 is tax, that's how they get 23%...

But if the price BEFORE tax was $10, the price AFTER tax would be $13...meaning 3 of 13 was tax (ie 23%).

It is against the desires of our government that we understand tax inclusive rates IMO. Income taxes are figured tax inclusive.

WHen one thinks of sales tax, one thinks of adding that percent to the price of the good/service. Hence the fact that the nrst is a "sales tax" leads many to erroneously assume the rate is added onto the price.

The rate is whateevr rate is needed to make it so total out of pocket is 23% federal tax.