As regards the income tax it is a deduction from total income whereas a sales tax is an ADDITION to the price. They are completely different and this method ignores that difference.
No. The whole point of the method is to compare apples to apples as is so stated by the AFT.
As regards the income tax it is a deduction from total income whereas a sales tax is an ADDITION to the price.
A sales tax can be either, there are many cases of sales taxes collected on the basis of tax included pricing.
Vending machine sales are most common example of such, as well as the fact that many states allow tax included pricing as an election of the business.
Anothre good example being, the resteraunt down the hiway from me uses tax inclusive pricing on it meals and products sold there. All that is required is for the business to anounce the fact that all prices include the tax.
They are completely different and this method ignores that difference.
The method of calculating the amount of tax has nothing to do with the difference between income taxes and sales taxes. A sales tax is often on the basis of the total value paid for an item, such as an item purchased from a vending machine for one. You may never see a receipt for it, but many locales and states charge collect that sales tax from the vending maching owner regardless, and then have the gall to tax him again on his profits from that same sale as an income tax.