The problem is the way you have created the shipping rule.
since you want to include shipping in the tax, you cannot refer to the taxable total in the trigger for the shipping rule, it causes in infinite loop.
where your shipping is a fglat rate of 4.25, using the trigger of subtotal for cart < 30.25 will yield the same result without the infinite loop.
you also need to change the trigge for the tax rule from Number of Unique Items = 0 to > 0