[DivaDelMar]

Incorrect. The rate is quoted both ways to facilitate comparison to the income tax. A 30% sales tax is equivalent to a 23% income based tax. There is no intent to deceive, rather advocates wish to provide a valid basis of comparison. A 30% sales tax is NOT equivalent to a 30% income tax and those who don’t think about this at any depth would equate the two. In a rush to judgment, without a valid basis of comparison, most would dismiss the proposal out of hand as a tax increase. That is false.

[Mark was here]

You walk up to someone who is not all cranked up on your inside baseball. You say we want to swap the Income tax for a sales tax. He asks what is the tax rate. You say 23%. He takes it to mean the tax on a $100 purchase will be $23.00.

Just as any other sales tax.

If you said the truth, according to how we compute sales taxes, 30%, then you would have a greater risk of having the prospect run away from you as fast as he could.

Then you would have to shout "wait you haven't heard about the pre-bates yet!"