Right! (finger on nose! bells ringing!)
This is the question many people have... if they don't understand income and payroll tax rates, they won't understand the nrst rate - they'll simply want to compute the nrst tax using the "add-on method"... which is NOT the way you figure income tax. It is, however the way state and local sales taxes are figured. Hence it makes sense to want to do this. It's a natural question - how to figure the amount of tax.
You can figure the rate in more than one way. Just like you can measure a stick in meters or inches. Is meters deceptive? Some folks may prefer meters, others may prefer inches. Irrespective of the units, the distance is the same.
If you want to describe the nrst tax rate and compare to the income and payroll tax rates you pay, then use tax inclusive (tax divided by total spent including the tax)...because that's how income and payroll tax rates are expressed. That rate is 23%. That's a no brainer.
If you want to figure how much an item will cost after the nrst is ADDED on, then of course use the ADD ON rate. THat rate is 29.9%.
There is an honest question in there - some people use the phrase "sales tax" and default to "add this percent to the price". That's fine. THey can use the 29.9%.
Others want to compare what they'll be paying under an nrst to what they're paying now. That's fine too. They can use the 23%.
Obviously the $ amount of tax is the same - just a different measuring stick.
So what's the beef? Do you call people deceptive for using inches instead of feet? The distance is the same, just different units....