The Pink Tax Costs Women Thousands Of Dollars Over Their Lifetimes

by posted in MAKE MONEY, TRENDING

Have you noticed that women’s shampoos are priced slightly high at supermarkets?

That is the “Pink Tax” in effect. The pink tax costs women thousands of dollars over their lifetimes. 

What is “Pink Tax”? 

The pink tax is a term given to additional sales tax on feminine products. These products include tampons, feminine pads, and menstrual products.

While these products cater to basic feminine needs and hygiene, many states in America see them as luxury items. Fortunately, the pink tax is not applicable to other necessities, including medicine and groceries. 

Since the male population does not require these items and does not have to pay for their personal care items, such products and products alike accumulate additional tax, dubbed as “the Pink Tax.” 

Why Did They Name it “The Pink Tax?” 

Often, pink comes across as a “feminine” color. Considering the delicacy embedded within this color, many manufacturers prefer using the pink color to market and brand products designed for women. 

Pink Tax Examples 

The pink tax is not only applicable to feminine care products.

Over time, many organizations have presented various examples that highlight the pricing differences in goods and services due to the gender-based tax. 

Some examples of the pink tax include: 

Apparel and Dry Cleaning:

Tailoring and Dry-cleaning women’s clothing costs higher. 

Basic Necessities: 

Products like Women’s razors, deodorant, and women’s razors, based on product costs and size, cost slightly higher compared to similar products for men.

For instance, if you buy a pink razor, it will cost you slightly more than buying a black or a blue razor.

Toys and Equipment

Toys or equipment for females, such as pink-colored scooters, helmets, and bikes, cost more than products of other colors. 

Long-Term Care Insurance

According to Rachael Burns, a certified financial planner, long-term care insurance for women is more costly due to having longer life expectancies.

In response to the rising need for long-term care insurance in later years, insurance carriers are adjusting rates for women to accommodate this increased demand.

Ultimately, long-term care insurance prices can cost women anywhere between 20-50% more than men. The pricing increase is subject to your care provider. 

Disability Insurance 

Unfortunately, women have to pay more for disability insurance than men, even if they carry identical medical histories and are the same age. 

The cause behind the increased pricing is that women are more likely to become disabled compared to men. With women undergoing conditions like pregnancies, there is always an increased risk of becoming disabled and requiring help. 

Disability insurers frequently impose higher premiums on women due to the higher volume of claims they tend to receive from female policyholders.

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How Much Does The Pink Tax Cost Women 

According to studies, the inclusion of the pink tax on products has affected women in physical, financial, and practical aspects. Based on the Data from the Economic Policy Institute, women earn approximately 20% less on the dollar compared to men. 

Some More Studies to Comprehend The Pink Tax Effect: 

According to a study conducted in New York to study the effects of the pink tax, it concluded that women’s products are 13% more costly compared to the products marketed for the male audience.

With the necessary products for women being taxed as a luxury item, the 13% extra money has had a significant financial impact on the ladies. 

Unfortunately, the pink tax affected women very much, leading to an epidemic of “Period Poverty.” According to this phenomenon, 1 in 4 women are unable to afford menstrual products. 

The increased costs of such necessities have led many women to struggle to afford them, producing financial, emotional, and menstrual strain on women. 

The Monetary Effect 

Based on more data collected from studies on the pink tax, women have to pay more than $1.3K annually. According to Period Law, the pink tax accumulates in the annual cost to women around $80 million! 

What States Are Rising Against The Pink Tax? 

As awareness spreads, more than twenty states in America have decided laws to abhor the Pink Tax: 

New York 

Three years ago, New York exempted the pink tax on certain goods and services. 

Ohio 

Following in the footsteps of New York, Ohio also became a pink tax-free state in 2020. The exemption of this unnecessary tax resulted in a wave of happiness across Ohio residents. 

California 

California was one of the first states to deem the pink tax unnecessary and mitigated it more than a decade ago.

The 2023 state retail law further imposes a ban on gender-based discrimination on products, allowing Californians to take a sigh of relief. 

Virginia 

Virginia has also eliminated the pink tax from all products marketed to women. 

Other states to eliminate the pink tax include Nebraska, Iowa, and Colorado. 

So, No Pink Tax? Not So Fast….. 

The pink tax is still applicable in most states of the US. While there have been efforts to ban the pink tax by raising the issue in Congress multiple times, it has been to no avail.

The Pink Tax Repeal Act has not been able to gather the needed votes through the US Senate and House of Representatives to free the country of this tax. 

Final Words 

Over the years, the pink tax costs have accumulated significantly, resulting in women paying significantly more for items that are a basic need. Fortunately, some states have finally started rising against it. 

If you live in New York State, California, or Miami-Dade County, you can report price discrimination to the local government. The NY State residents can also report the price discrimination to the Division of Consumer Protection or the state’s attorney general. 

The post The Pink Tax Costs Women Thousands Of Dollars Over Their Lifetimes appeared first on Dollarsanity.

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