In the United States, there is a strange disparity in the taxation of clothing, with women's clothing facing higher tax rates than their male equivalents. This situation, commonly described as the "pink tax," has been widely debated among consumers and policymakers.
The "pink tax" is not a real tax but a term applied to the price disparity between comparable products aimed at women compared to men. Based on different studies, women's apparel is more likely to be taxed than men's apparel because tariffs and sales taxes are set up. For example, some women's apparel, including dresses and bras, are categorized as non-essential goods and thus have higher tax rates.
This tax differential has the potential to create dramatic disparities in the costs of seemingly equivalent products. A case in point is a study that determined that women's clothing is charged 2.3% more than men's clothing on average, effective tax rates. This is not a high number in isolation, but added up, over time, this can be overly burdensome, particularly for lower-income households in which women tend to be primary breadwinners.
The explanation of the tax difference is complicated and many-sided. It is argued by some that it is a reflection of archaic tax legislation that does not reflect the developing role of women in society. Others suggest that the tax system is set up to benefit industries and products that are considered vital and thus many women's products are excluded.
Efforts at rewriting the tax code and expunging the "pink tax" have achieved a mixed response. Several states have enacted statutes for lowering or ending the differential in taxation, but a more all-encompassing federal measure eludes completion. In the meantime, buyers are left to struggle through the Byzantine taxing structure and inform themselves before purchasing.
The "pink tax" reminds us of the insidious yet widespread manner in which inequality can become manifest in the everyday. Through highlighting these issues and arguing for change, consumers can contribute to a more equitable marketplace.