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?
Yeah, like most sales tax rates are figured tax exclusive - you know, tax exclusive... a method you say doesn't exist yet you insist on using? You have IQ deficency.
Percentage calculations can be defined in 2 parts;
1) the part
2) the whole... your current problem is that you don't recognize that the whole can be either the whole including tax or excluding tax.
In the following examples, see if you can pick out the whole (the bold should help).
a) I paid $20 tax and I earned $100. ======> tax/whole(i)=20/100=20%.
b) I paid $20 tax and I kept $80.======> tax/whole(e)=20/80 =25%.
(BTW this is the method you insist on using. BTW this is also the method you say doesn't exist... inexplicable).
I certainly hope you see that the two situations have the same amount of tax - the rates are only different because of the different method of calculation.
Here's another real word example you may understand. Let's say, hypothetically, that you sell tax evasion kits for $50. If you give a 10% discount, what would the new price be?....$45. That is a tax inclusive calculation (like income taxes).
Now, if the price is $45 and you must collect 10% sales tax, what is the final price?...$49.50.
Why aren't the prices the same - after all you took 10% off then added 10%?
The answer is that the number being used for the whole changes... just like in tax rate calculations.
It's really fun to show up every morning and teach you a little 9th grade math. You will eventually get this!