(MONEY Magazine) – COVER STORY 62 HOW TO CUT ALL THOSE RISING TAXES by Teresa Tritch Your state and local taxes may need as much attention as your federal bite. -- MONEY poll: What taxes hurt the most, and what you're doing about them. Page 64

66 ELEVEN WAYS TO BEAT THE IRS by Teresa Tritch The new tax law calls for basic shifts in strategy. -- Worksheet: Find out how much more federal tax you'll pay for '91. Page 68

86 IS YOUR STATE A HAVEN OR HELL? by John Sims & Alaska's the best, Washington, D.C.'s the worst -- plus the facts on the other 49. -- MONEY'S EXCLUSIVE STATE-BY-STATE TAX RANKINGS compiled by Deborah Lohse Page 90

94 FED UP AND FIGHTING BACK by Suzanne Seixas Oklahoma City's Dan Brown struggles to lead a grass-roots tax revolt without losing command of his own family's finances. So far, he's spent $10,000 in savings.

102 TAMING YOUR LOCAL TAXES by Marguerite T. Smith These four steps can allow you to win real property tax relief. -- A tale of two tax bills: similar houses in similar Detroit suburbs, yet one's property taxes are 50% higher than the other's. Page 104 -- Worksheet: How to see whether your property tax bill is inflated. Page 107

FEATURES 112 KICK INTO GEAR NOW by Clint Willis It's time to move some of your cash into stock funds, especially these 12. By investing equal amounts monthly, you'll be ready to profit in the inevitable market rally.

122 HOW TO BE AS SMART AS YOUR PHONE by Debra Wishik Englander An array of new bells and whistles can turn your telephone into an electronic wizard -- but at a price. This shopper's guide tells you all you need to know.

130 AVOIDING 10 COMMON INVESTING MYTHS by Jerry Edgerton Any of these 10 widely held misconceptions about investing could prove hazardous to your wealth. Here's the straight stuff on each one.

DEPARTMENTS

EDITOR'S NOTES All the rage over taxes. Page 5

MAIL You say you're ready to fight the IRS. Page 9

MONEY FORECAST The good news for investors. Page 15

MONEY SCORECARD Why CD rates won't soar soon. Page 17

, MONEY UPDATE Your best moves for hard times. Page 25

MONEY HELPS Marlys Harris fields your questions. Page 35

FUND WATCH The lowdown on no-load annuities. Page 39

WALL STREET Six gems amid the financial rubble. Page 55

TRAVEL WISE Where to find the lowest air fares. Page 135

MONEY INDEX for 1990. Last year's articles. Page 138

MONEY PRO This Scot beat Lynch and Neff. Page 147

CHECK IT OUT What you should do right now. Page 152

Taxpayers are getting increasingly emotional, as the three profiles on the cover show. With some bills soaring 80% in three years, it's time to defend yourself. Cover photographs by Jonathan Levine (top), Theo Westenberger (middle) and Peter Sibbald (bottom).