The price of the object I’m selling is $ 70. Add 30% tax that’s $ 21. The cost to you is $ 91.
Saying that the tax is 23% because $ 21 = 23% of $ 91 is b.s. Isn’t claiming that the tax is 23% stating the tax as if it was “embedded”?
Claiming that I can recompute my cost to eliminate other “embedded taxes”, and so reduce the $ 70 that I need to get to operate my business is a fairy tale. The income tax on the profit on the $ 70 item is, maybe $ 2 or $3. 15% profit on the $ 70 item ( a very high margin ) equals $ 10.50 pre-income tax. Income Tax at 25% is $ 2.62.
The price of the object I’m selling is $ 100. The FT adds 30 dollars more for a total of 130 dollars.
30%