Have you noticed that the prices of women’s shampoos are a little higher at the supermarket?
That is the “pink tax.” The pink tax will cost women thousands of dollars over their lifetime.
What is the “pink tax”?
Pink tax is the term given to the additional consumption tax on women’s products. These products include tampons, sanitary napkins, menstrual products, etc.
Although these products serve women’s basic needs and hygiene, many American states consider them luxury goods. Fortunately, the pink tax does not apply to other necessities such as medicines and groceries.
Since men do not need these items and do not have to pay for the purchase of personal care products, such products and products likewise accumulate an additional tax called the “pink tax.”
Why did they call it the “pink tax”?
Pink is often perceived as a “feminine” color. Given the delicacy this color carries, many manufacturers prefer to use pink in marketing and branding products designed for women.
pink tax example
The pink tax doesn’t just apply to feminine care products.
Over time, many organizations have presented various examples that highlight the differential pricing of goods and services due to gender-based taxes.
Examples of pink taxes include:
Apparel and dry cleaning:
Tailoring and dry cleaning of women’s clothing is expensive.
Basically what you need:
Products such as women’s razors, deodorants, and women’s razors are slightly more expensive compared to similar products for men based on product cost and size.
For example, buying a pink razor will cost slightly more than buying a black or blue razor.
toys and supplies
Toys and supplies for women, such as pink scooters, helmets, and bicycles, are more expensive than products in other colors.
Long-term care insurance
According to Rachel Burns, a certified financial planner, women have longer life expectancies, which makes long-term care insurance more expensive.
In response to the increased need for long-term care insurance in recent years, insurance companies are adjusting premiums for women to accommodate this increased demand.
Ultimately, long-term care insurance costs 20 to 50 percent more for women than for men. Price increases are at the discretion of the nursing care provider.
disability insurance
Unfortunately, women have to pay more in disability insurance premiums than men, even with the same medical history and the same age.
The reason for the price increase is that women are more likely to become disabled than men. When a woman finds herself in a situation such as pregnancy, she is always at increased risk of becoming disabled and needing support.
Disability insurance companies often charge higher premiums to women because they tend to receive more claims from female policyholders.
Dollar Sanity details:
The ghetto tax is real.Poor people can pay more than $1,000 a year in taxes
Packing lunch for work could save you $1,944 a year.
15 things you should stop doing to save money
How much does the pink tax cost women?
Research shows that the introduction of a pink tax on products impacts women physically, financially and practically. Based on data from the Economic Policy Institute, a woman earns about 20% less per dollar of her income than a man.
Further research to understand pink tax effects:
According to a study conducted in new york To study the impact of the pink tax, we concluded that products for women are 13% more expensive than products marketed to men.
The additional 13% has a huge economic impact on women, as products that women need are taxed as luxury goods.
Unfortunately, the pink tax had a huge impact on women, creating an epidemic of ‘period poverty’. According to this phenomenon, one in four women cannot afford menstrual products.
As the prices of these necessities have increased, many women are struggling to afford them, placing financial, psychological and menstrual burdens on women.
financial impact
Based on more data gathered from research on the pink tax, women would have to pay more than $13,000 a year. According to the period law, the pink tax would accumulate as a cost to women of approximately $80 million annually.
Which states are opposed to the pink tax?
As awareness spread, more than 20 American states passed laws to avoid the pink tax.
new york
Three years ago, New York State exempted certain goods and services from the pink tax.
Ohio
Following New York, Ohio also became a pink tax-free state in 2020. This exemption from unnecessary taxes spread a wave of happiness throughout Ohio’s population.
California
California was one of the first states to deem the pink tax unnecessary and reduce it more than a decade ago.
Californians can breathe a sigh of relief as the state retail law of 2023 further prohibits gender-based discrimination in products.
Virginia
Virginia also eliminated the pink tax on all products sold to women.
Other states that will abolish the pink tax include Nebraska, Iowa, and Colorado.
So, is there no need for a pink tax? Not so soon…
The pink tax still applies in most US states. There were numerous attempts to ban the pink tax by raising the issue in Congress, but to no avail.
The Pink Tax Repeal Act failed to garner the votes needed in the U.S. Senate and House of Representatives to release this tax from the country.
The last word
Over the years, pink tax costs have accumulated significantly, resulting in women paying far more for basic necessities. Fortunately, some states are finally starting to push back against this.
If you live in New York State, California, or Miami-Dade County, you can report price discrimination to your local government. New York State residents can also report price discrimination to the Department of Consumer Protection or the state attorney general.
Hello, I’m Ashley, a freelance writer with a passion for personal finance. From a young age, I’ve been fascinated by the power of money and how it shapes our lives. I spent years learning everything I could about budgeting, saving, investing, and retirement planning. So if you’re looking for tips, advice, or a little bit of inspiration to help you on your financial journey, you’ve come to the right place. I’m always happy to help. I’m excited to share my passion for personal finance with you.
