When I went to school the $103.85 would be "the gross payment"...
So using your new math, which part of your calculation would you describe as "the gross payment"?
Maybe where you went to school that's true, but by the statuatory language in HR25/SB25, the gross payment for federal tax purposes is $100, because the state sales taxes are not included.
Again, this is why it is actually easier to implement the NRST using tax-exclusive rates, although the tax-inclusive rate is used for internal Congresional use.
You love using the "gross payments" line, but you also love to ignore the definitions. Let me refresh your memory a little bit:
(5) GROSS PAYMENTS- The term `gross payments' means payments for taxable property or services, including Federal taxes imposed by this title....
(14) Taxable property or service-
`(A) GENERAL RULE- The term `taxable property or service' means--
`(i) any property (including leaseholds of any term or rents with respect to such property) but excluding--
`(I) intangible property, and
`(II) used property, and
`(ii) any service (including any financial intermediation services as determined by section 801).`(B) SERVICE- For purposes of subparagraph (A), the term `service'--
`(i) shall include any service performed by an employee for which the employee is paid wages or a salary by a taxable employer, and
`(ii) shall not include any service performed by an employee for which the employee is paid wages or a salary--`(I) by an employer in the regular course of the employer's trade or business,
`(II) by an employer that is a not-for-profit organization (as defined in section 706),
`(III) by an employer that is a government enterprise (as defined in section 704), and
`(IV) by taxable employers to employees directly providing education and training.
Note that "this title" from subsection 5 is USC 26 (amended), and that the definition of "taxable property or services" does not include state or local sales taxes. Now, one might claim that this is either ambiguous or implicitly includes state/local sales taxes (unless one is a compelte and raving lunatic who claims that they are explicitly included), but then one only has to refer to:
`SECTION 1. PRINCIPLES OF INTERPRETATION.`(a) IN GENERAL- Any court, the Secretary, and any sales tax administering authority shall consider the purposes of this subtitle (as set forth in subsection (b)) as the primary aid in statutory construction.
`(b) PURPOSES- The purposes of this subtitle are as follows:
`(1) To raise revenue needed by the Federal Government in a manner consistent with the other purposes of this subtitle.
`(2) To tax all consumption of goods and services in the United States once, without exception, but only once.
`(3) To prevent double, multiple, or cascading taxation. ...
In other words, any ambiguity must be resolved to not include any cascading of taxes -- if the state/local sales tax were to be included in the "gross payments" definition, then this principle would be violated.