It's no secret that the world is still fighting for gender equality in the financial world. According to this PayScale report, going into 2022, women earn 82 cents for every $1 men earn. For minorities and women over the age of 45, that pay gap is even bigger.
But the pay gap isn’t the only example of gender-based financial inequity. There are many instances of products that are marketed toward women being more expensive than products for men -- even when those products contain the same or similar ingredients.
Thanks to the frequent use of the color pink to market products to women, the price hike from men's and gender-neutral products has earned itself a catchy nickname. It's known as the "pink tax."
Everything You Need To Know About The Pink Tax
The Pink Tax, in short, is a term for additional costs someone pays for being a woman or female assigned at birth. It affects cis-gendered women, trans women, trans men, and non-binary people in myriad ways we may not always realize. In 2014, it was estimated that the average woman pays about $1,300 annually in these "pink taxes".
The Pink Tax, also known as the Tampon Tax, looks different from market to market. Sure, it can look like paying more for sundry products, clothes, or dry cleaning. But it can also look like spending more on transportation in order to get home safely.
Perhaps the most obvious example of the Pink Tax is the sales tax on period products. Tampons, liners, and other products associated with menstruation are still charged a sales tax in 22 states in the U.S. In those states, people with periods who are financially struggling may be forced to miss school or work, building on the inequity that low-income individuals already experience -- especially when you find out that feminine hygiene products aren't covered by food stamps.
CVS Is Dropping Prices On Its Women's Health Products
Starting Oct. 13, CVS (CVS) is making a move to eliminate the Pink Tax for some of its consumers. The drugstore chain announced that it will be dropping prices by 25% on store-branded CVS Health and Live Better period products, including tampons, menstrual pads, liners, and cups.
The price reduction is aimed at compensating for the Pink Tax charged in 12 of the 22 states still allowing the taxation. Last week, CVS also began paying sales tax for customers in Arkansas, Georgia, Hawaii, Louisiana, Missouri, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin and West Virginia.
CVS stores in remaining Pink-Tax states Alabama, Arizona, Idaho, Indiana, Kansas, Kentucky, Mississippi, North Carolina, North Dakota, Oklahoma, South Dakota, and Wyoming won't be able to cover taxes on period products as of yet. These states have laws preventing third parties from paying taxes on a customer's behalf.
Walgreens (WBA) and Rite-Aid (RAD) do not, as of yet, have similar pricing changes on their store-brand feminine hygiene products. Neither company has released any comments specifically acknowledging or addressing the Pink Tax. It's unclear if this practice will be the start of a new market standard or something that sets CVS apart from its competitors.
