[rwrcpa1]

The tax is "of the gross payment" including itself and any other taxes, fees excises included in a "gross payment". The 23% rate in sales tax terms is 30%. $100.00 plus 30% federal tax = $130.00 23% of $130.00 (gross payment) = $30.00 (federal sales tax)

Actually, the equivalent tax exclusive rate is 29.87%. Otherwise your math is correct. However, under current law I have to earn $148.48 (25% marginal tax rate) to buy the $100.00 item. I would rather earn $130.

[Your Nightmare]

Actually, the equivalent tax exclusive rate is 29.87%. Otherwise your math is correct. However, under current law I have to earn $148.48 (25% marginal tax rate) to buy the $100.00 item. I would rather earn $130.

Your math is incorrect. With a 25% statutory marginal tax rate you would have to earn $133 to buy a $100 item. And you really should be using an "effective" marginal tax rate instead of a statutory rate.