The shipping is only taxed if you have this box checked and have an active tax rule applied to your cart, when both of the rules are triggered the shipping will be included in the cart subtotal that the tax is based on.
On your confirm page you should have all of the values that will be needed by the server behaviors on this page. Are you getting an error in regards to a missing value?
The shipping will show in the cart after it has been triggered. In a real world scenario this would only happen after the user has made their way to the confirm page, by default the shipping rule should not show if it is based on session variable values that are created further along in the process.
In regards to the tax rule here is the logic for how it is working. A user selects a county from the list then submits the form. On the next page you check the county the user selected with a recordset that is filtered on the posted value. You then store the rate for this county in a session variable. Finally you have a charge rule for your tax that is based on the presence of this session variable and calculated on it's value.