yes it does make sense- in your scnario sales taxes go up, but prices go down so it evens out.
but you dont mention the paycheck in that scenario. if you suddenly have no taxes taken out you have a huge take home pay increase.
so the price of goods goes down, but then sales tax is added to make up the difference- but sales tax will have to go up a HUGE amount to make up for the giant increase in take-home pay AND the lower cost of the goods.
Explain to me why if take home pay goes up that sales taxes MUST go up "a huge amount" to make up for the "giant increase in take home pay."