You usually apply a tax before a discount so lets do the math
Forget the price right now
10% is the same as .1 so you can write a tax of $X amount of money by writing .1X
Lets apply that to the $80.8*88 = 70.4
Y is the tax and price
Y=1.1($80)
this is 110% of the $80
Then, you take a 20% discount
Write that as .8X, it will give you 80% of the price
.8($88) = $70.40