Income tax:
Earn $100 pay 30% tax you are left with $70.
What is your tax rate? Is it 30%, or is it 43%
($30 is 43% of $70)
After all, you have $70 in your pocket and you paid a tax of $30.
Frankly, the argument about inculsive, exclusive; gross or net, etc. is moot. You can gross or net the current income tax as easy as you can the NRST and make an argument either way. In the end the same amount of money is in your pocket.This issue isn't whether you can, it whether you should. The vast majority of people have never even heard of inclusive or exclusive rates, I hadn't until I started in these discussions, so when they hear a sales tax rate they don't know any better than to think it's the exclusive rate. If it's not explained, and it rarely is, they are being misled into thinking they would pay less than they really would.
Earn $100 pay 30% tax you are left with $70.What is your tax rate? Is it 30%, or is it 43%
($30 is 43% of $70)
So what's your point?...
If you didn't pay $30 tax on $70, how could your tax rate be 43%?