Taxes in Massachusetts

In recent months, I've heard about Massachusetts' sales taxes a couple times.  The complaint has been that Massachusetts charges taxes on the value of the item, not the discounted price (namely in regards to phones which are only bought at deeply discounted rates... name for me ANYBODY that has bought a phone for the actual not-discounted price please).  The sales tax in Massachusetts is 6.25%.  The sales tax jumped to this level from 5% in the last few years.  Here's the thing... at 6.25%, we're actually tied with 3 other states for 13th place for the highest sales tax.  Yes, that's right, 12 states have higher sales taxes than, Massachusetts, and 8 of those are higher than 6.8%.  Of our surrounding states, only New Hampshire really stands out as having much lower sales tax rates (0% for most things, 9% for prepared foods).  Connecticut is higher in general than Massachusetts with 6.35%.  Rhode Island is higher in general than Massachusetts with 7% and even higher for processed foods at 8%.  Vermont is lower in general, with 6%, but higher in some cities (additional 1%, making it 7% total) and has a 9% (or more in some cities) sales tax for prepared foods.  You might think that New York is lower with its 4% rate, but in some cities in New York, the overall rate jumps to 8.875%.  And all this discussion is over the sales tax on something that's generally around $600... I've heard of pinching pennies but $37.5 doesn't seem that big a deal to me.... admittedly, it's sometimes doubling the amount you're paying for the phone, but that's because the methodology of the sale of phones and phone coverage is broken, not taxes.  Still, $37.5 in taxes doesn't seem too much for something you buy every couple years, or am I missing something.

On the other hand, the additional taxes on prepared food could easily have a larger effect on your wallet.  Let's say you buy just $100/month of prepared foods per month, that's about 4 small lunches or 2 reasonably priced dinners per week and $1200/year.  New Hampshire, Rhode Island and Vermont all charge at least a whole 1% more than Massachusetts.  New Hampshire and Vermont each charge 9% or more.  So on that food, you're being charged $108/year, $33/year more than in Massachusetts, or $66 every two years, which would cover the sales tax on your phone.  And that's a pretty reasonable prepared foods budget.  I know plenty of people who buy their lunch at the local lunch place every day and thus spend a lot more on prepared foods without even considering if they order out or go to a restaurant every now and then.

Oh, by the way, not to beat on New Hampshire too much, but they also have a 7% telecommunications tax.  Yep, they charge you for telecommunications specifically, making them and Louisiana the only states to do so.  I have yet to find any other state that has a tax on telecommunications at all, in fact.  But sure, telecommunications isn't a big ticket item... not like many people spend $50-100/month on it, which would be $3.50-$7 per month that New Hampshire residents are charged that Connecticut, Massachusetts, New York, Rhode Island, and Vermont residents don't have to pay (that's $42-84/year, which, AGAIN, covers the tax on the phone you're buying FOR TELECOMMUNICATIONS).

So, just consider that next time you think about the high sales taxes in Massachusetts.