Under the NRST for example, a $100 retail item consists of a $77 product plus a $23 tax
No. A $77 item would have a 23% tax of $17.81.
The total would be $94.81.
A $100 'retail item' would cost $123.
Now, let's say the government raises the NRST from 23% to 26% -- a whopping 13% tax increase! Your retail price goes from $100 to $103 to accomodate the tax.
Bull. -- A $100 'retail item' would then cost $126.00, tax included.
To the consumer, therefore, that 13% tax increase looks only like a 3% increase. Hey, not so bad, huh?
That 3% increase looks like a $3.00 increase [per hundred] to most rational people paulsen..
Why are you different?
A $100 'retail item' would cost $123.Jonestown, you've been hoodwinked. The 23% rate is what's known as the "tax inclusive" rate. It's the percentage of the gross payment including tax that is paid in tax. The rate in sales tax terms is 29.87%.