Neither. A $100 price tag item in the store costs you $100 at the register (plus your local/state sales tax). Because as I have said several times, the tax is INCLUSIVE! I'm sorry if I've left out some details and definitions. I thought you would assume them being commonsense as they are.
I'll try to be clearer.
Tell me, if the NRST is implemented and I buy an item the raw price of which is $100, how much actually comes out of my pocket to pay for the item, about $123 or about $130?
The raw price is the price figured by the store owner with his markup that is to be charged before any sales taxes are included. In any taxable sale there is a starting price that the store will charge for its product.
That price is the price you pay in the absence of sales taxes. Now, sales taxes are figured. Let's assume no state sales tax to keep it simple. What amount does the buyer actually pull from his pocket to pay for the item.
Please do not make it complicated; it's not. I work with this every day. Please do not say "$100". If you do, you are saying there are no sales tax. Please don't assume that $100 raw price will change even one cent after the implementation of the NRST. To so assume is erroneous because the store may not elect to reduce any savings.
I've tried to be as clear and precise as I can. Do you understand what I'm asking?
Tell me, if the NRST is implemented and I buy an item the raw price of which is $100, how much actually comes out of my pocket to pay for the item, about $123 or about $130? Same question to you... what does an item with a "raw cost" of $100 cost today, under the income tax? And how much would someone have to earn to buy that item, after their income and payroll taxes are removed from their gross pay?
The fact that you can't actually answer that question is, in and of itself, a great reason to get rid of the income tax, because no one has a clue what their actual burden is.
I will state it again, and if you do not understand you need to work on your reading comprehension.
If you go into a store and see an item that has a price tag on it of $100, when you go to the register, it will ring up for $100. The NRST is NOT added at the register. If a store elects to not reduce prices based on savings from the removal of the embedded taxes that is their choice. But it will also lead to them going out of business because their competitor across the street will do so to try and get their customers.