[woodbeez]

You need to compare the tax savings with gross sales to say how much you can reduce prices. But you don't like to do that because it shows how little those savings actually are

Gross sales have nothing to do with tax savings. Gross sales are only half of the equation. You can have all the sales in the world and have equal expenses and have NO income. You wouldn't have any tax savings and you also wouldn't be in business for very long.

Do you figure your tax liability on your sales or your income?

[Always Right]

Do you figure your tax liability on your sales or your income?

No one is figuring tax liability. All the facts are known, it is right on their finacial sheets. What every rational person is figuring is how much eliminating that tax can reduce the price they charge the customer and still maintain their same profit.

[lewislynn]

Gross sales have nothing to do with tax savings. Gross sales are only half of the equation. You can have all the sales in the world and have equal expenses and have NO income.

And under the sales tax you'd still owe 23% of your gross sales in taxes even when you have "NO income".

Do you figure your tax liability on your sales or your income?

Your sales ARE your (gross) income. Under the sales tax you'd owe tax on your sales...The income tax is on "taxable income".