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Don't Mess With Taxes

Taxes. Sure you hate 'em, but you're stuck with 'em. Either that, or you're stuck in a federal jail cell. We'll make your tax tasks less, well, taxing, and help cure your personal finance ills with regular dosesof money news, notices, tips, commentary, insight and humor, courtesy of Texas journalist Kay Bell.

Attention, Bay State shoppers

Posted on 08/12/2006 01:29 AM | Link | Post Comment

Shopping_bag_ladies_2 You might be able to save a few bucks on Saturday and Sunday, as Massachusetts holds its third annual sales tax holiday. During these two days, items that sell for up to $2,500 will not have the state's 5% sales tax tacked on. That's a nice $125 not added to every maximum-priced eligible item.

This year, 14 states and the District of Columbia held or will hold sales-tax-free holidays. Most of these annual back-to-school events were last weekend, although Washington, D.C.'s runs through this Sunday. The nation's capital also will hold a post-Thanksgiving sales tax holiday, much to the delight of early Christmas shoppers.

After Massachusetts and D.C. wrap up their holidays this weekend, we have a week's break before Connecticut and Maryland shoppers are temporarily free of their sales taxes.

From Aug. 20-26, Connecticut is waiving tax on certain clothing and shoes that cost less than $300. Similar items priced at $100 or less will be tax-free during Maryland's Aug. 23-27 no-sales-tax "summer clearance" event.

Tax watchers tend to view the holidays as a gimmick and generally bad tax policy. You can read why they think that in this story.

But you can't convince shoppers or politicians of that. Even many businesses, despite having to do double duty during the holidays to decipher what is and isn't tax-free, look forward to them as a way to get customers into the shops.

I tend to agree with the anti-holiday folks. To me, these events have that sneaky coupon lure that encourages people to spend more than they usually would all in the name of saving a few bucks.

But I'm in the minority, philosophically. And practically speaking, I'm one of the holiday participants.

I admit it. During last weekend's tax holiday here in Texas, I went out and bought some office supplies that happened to fall into the state's sales-tax-free school supplies category.

Hey, if you can't beat 'em, join 'em!

Just be careful with your credit cards out there and make sure you only use them in true tax-saving situations.

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