The 23% figure would more correctly be called the "retailer income tax on sales". If a retailer receives, as income, $100 in sales, then he is taxed $23. on that income. Yes?
But the way everyone figures "sales tax" is they look at the retail cost (above) of $77., then add a sales tax of $23. Sorry, but that looks like a sales tax rate of 30% to me.
The trouble is that the numbers are misapplied. Let's start with the 23% number. That's the amount of tax that goes to the federal government in place of income tax. Rather than the government taxing us on the basis of income, they tax us on the basis of consumption. So, for starters, we can control the amount of taxes we pay to the government by controlling spending.
Secondly, essentials such as food are exempt from the tax. So, now, take your check stub and assume that the Gross Pay and Net Pay numbers are the same. No federal witholding at all. You take home and keep everything that you earned until you buy a taxable item.
Third, this is a totally fair tax. No exemptions. Poor people pay the same rate and percentage as rich people. NO exemptions or exclusions.
Finally, businesses do not pay taxes. They are middle-men who pass the taxes on to their customers by adding it into the price of their goods. So, if you sell an item for $100, the price (with the NRST) to the consumer isn't $100, it is $123. The tax is handled as a sales tax (thus the name) just as sales tax is handled today. If the price of an item is $77, then the price to the consumer is $77 PLUS 23% of whatever $77 is (I'm too lazy to open a calulator, this morning). The tax is passed-through, it does not come out of the retailer's pocket. A 23% tax that came out of the retailer's pocket would be stupid and drive retailers out of business. Retailers are mostly comprised of small businesses (preaching to the choir, I know) and they are the lifeblood of America, so to tax a retailer at a rate of 23% would be insane and counterproductive.
Today, do you charge a customer $5.00 for an item, then charge yourself (for example) 7% of $5.00 to pay the governor? Or do you charge a customer $5.00 for an item and add the 7% for the governor to the $5.00 sales price? At the end of the day, when you close the till, the 7% of the gross that you deduct and send to the governor should still leave you the base price of the item plus your margin. So, if you paid $3.50 for the item you sold for $5.00, you should still have that $1.50 margin before operating expenses. If not, you might want to adjust your price structure.