This is the U.S.A. National Sales Tax (NST) hoax: “The tax is 23 percent”.
The 23% is used to hoodwink people who do not bother to read Congressman Linder’s Bill. This figure is a mathematical relationship. It is not money paid.
The truth is the tax is 30% on purchases of all services and new products. The Bill requires that the NST be printed on the cash register receipt.
You buy a soft drink. The receipt states: “$1 soft drink”, “$0.30 NST”, “$1.30 Total”.
Citizens will be outraged. $0.30 divided by $1.30 equals 23 percent. This is not the cents the consumer pays.
(The same simple-mindedness is manifested in percent pay raises). You pay 30 cents because the rate is 30 percent. )
Read the Bill and do the math.
The mathematically-challenged say: “Item costs 77 cents, tax is 23 cents, the total is 1 dollar. That’s a 23 percent tax.”
Compute a 30 percent tax of a price. Divide the tax by the sum of the price plus the tax. The tax will be 23 percent of the total of the-price-and-the-tax.