Not in your feeble mind perhaps. But here it is... don't melt!
Earn $100,000 and keep $80,000 after tax. You can figure the rate more than one way silly.
1) amount of tax divided by the total INcluding tax (ie tax inclusive); 20k/100k=20%
2) amount of tax divided by the amount remaining EXcluding tax (tax exclusive); 20k/80k=25%
There is no one way to figure percentages. Both rates above are correct obviously. You can use either you wish.
Really, why do you get into the math anymore?
amount of tax divided by the amount remaining EXcluding tax (tax exclusive); 20k/80k=25%
A tax rate that excludes the tax?
20 is 25% of 80...so what, do I owe another $20.00? Using your exclusive income tax rate, how would I first calculate "the amount remaining"?...remaining from taxable income?...remaining from gross income?
I don't pay income tax on 100% of my income what's the remaining amount I divide by what tax rate to get your "exclusive tax"?...And since I know the real rate, why do I care?