On September 27, Governor Gavin Newsom signed a bill banning the “pink tax” — the practice of imposing different prices for similar consumer products, often toiletries and other necessities, based on gender. Drafted by assembly member Rebecca Bauer-Kahan, AB 1287 is the latest in a long list of legislative efforts going back to 1957 seeking to address ongoing gender-based economic discrimination in California. Although AB 1287 holds private companies accountable for gender pricing, more legislation is needed to close out economic gender inequality in the U.S.
According to recent studies, every year, the typical California woman pays approximately $2,381 more for the same goods and services than a man, nearly $188,000 over the course of her lifetime, and an aggregate of $47 billion for womxn across the state. With more than 55 million full-time working womxn affected by the pay gap according to the American Progress, the “pink tax” goes beyond just price differences on toiletries; it creates a list of systemic and harmful impediments against menstruating people securing equal economic opportunities. These barriers are even higher for womxn of color who, on average, earn the lowest wages in the U.S. Thus, the “pink tax” is a historical-systemic economic gap depreciating the financial wellness of menstruating individuals.
While the passage of AB 1287 is a step in the right direction, more must be done to end gender-based economic inequality in our country. Pay inequity, for example, continues to be one of the more intractable problems. A Pew Research Center survey shows that 25% of working womxn indicate they are paid less than their male counterparts and are roughly four times as likely to be underestimated and treated as incompetent due to their gender. By constraining working womxn’s incomes, the gender income gap prevents womxn’s economic growth and impedes their spending power. Yet the government has failed to pass updated and impactful equal pay reform. In over a decade, American Progress reported that “the gender gap has only closed by 4 cents” and is not expected to reach pay equity until 2059.
A lack of policies providing a better life-work balance is the second problem impacting womxn’s economic opportunities. At the top of the income ladder, few womxn head large corporations, hold high-level management positions or serve on corporate boards because doing so would require “longer workweeks and penalize taking time off.” “longer workweeks and penalize taking time off”. Even in 2022, when womxn make up nearly half the U.S. workforce, womxn continue to shoulder a larger share of household responsibilities, exacerbating the need for more policies that support expanded family, medical and maternity leave and more flexible work schedules. For working-class womxn who disproportionately bear the burden of outdated policies that diminish their opportunities in the workforce, increased minimum wage policies, job training, educational opportunities and affordable childcare are essential and needed policy changes.
The elimination of the “pink tax” will make a difference to millions of womxn in California, which is great. However, to achieve economic equality, the younger generation of womxn must prioritize this issue by pushing elected representatives and others to support policies that eliminate these discriminatory practices and equalize economic disparities between the sexes.
It’s time we work to eliminate these insidious barriers holding back womxn from attaining full participation in our nation’s economy because, “When women succeed, America succeeds.”