March 24, 2022
March 24, 2022
Women continue to advance in the workplace, education and other areas of life. They are now more likely to have college degrees than men. And young women are earning more money than previous generations were at the same age.
Women’s History Month is a time to honor the achievements of people who identify as women both today and throughout history and recognize the social advancements that got us here.
Despite momentous advancements, gender parity eludes us. Just last month—in the year 2022—the U.S. Women’s National Soccer Team reached an agreement with the U.S. Soccer Federation to settle a class-action lawsuit over pay inequity. For those of us who aren’t star athletes, the gender pay gap exists, too, resulting in lower lifetime earnings and less money to save for retirement. The cost of childcare is steadily rising, forcing some women to exit the workforce to take care of their young children. And despite overall gains in the workplace and education, women are more likely than men to live in poverty.
Tax policy cannot change social mores and practices that cause the gender divide, but progressive policy can boost women’s economic security, and robust political discourse around these policy solutions can, perhaps, lead to greater political and social will to build a more just and equitable society. Women’s History Month is a chance to remember what happens for women when tax policy becomes more progressive, boosts income, and helps make raising a family more affordable.
A More Progressive Tax Code Bodes Well for Women
Too many features of our tax code have an indirect, adverse effect on women. Wealth has been concentrating at the top for more than four decades, and that trend has accelerated during the COVID-19 pandemic. The beneficiaries of this are typically white and male. As their wealth reaches new heights, it is barely being taxed because our tax code provides favorable treatment for income earned from wealth over income earned from work. Far too often, in fact, wealth accumulation is never taxed at all. When we fail to tax the nation’s more fortunate citizens, we give anti-government lawmakers an easy out: They cannot make the necessary investments, they claim, because there is not enough revenue. This means the rich are leaving the rest of us behind to pick up the slack by continually not paying their fair share.
At the state level, lower-income people are taxed at a higher rate than the top 1 percent. Because women are more likely to be poor and have lower earnings than men, they are more likely to fall in income groups that are taxed more than the rich. Black and Hispanic women are particularly affected they have the lowest overall earnings. Moving state tax codes in a more progressive direction would address these challenges and benefit women.
More progressive tax policies would help the federal and state governments raise the revenue they need to invest in programs that help women thrive.
Refundable Tax Credits Should be Used to Boost Women’s Incomes
Tax policies when structured properly can have a direct, positive effect on women’s lives. Women are more likely to be low-wage workers. The Earned Income Tax Credit (EITC) can help. It is an effective way to increase the income of low-wage women. Reviving recently expired reforms to the credit, and making those expansions permanent, would make the EITC even more effective by allowing it to reach more low-income women without children in the home.
The Child Tax Credit (CTC) also helps boost the income of women, but only of those who are mothers of children under age 17. Last year’s now-expired expansion of the CTC that included increased benefits, full refundability for low-income families, and the ability to access the credit in monthly installments, lifted children out of poverty and temporarily supplemented the incomes of many mothers. Reviving those reforms is an urgent policy priority.
In particular, the refundability of the EITC and partial refundability of the CTC boost the after-tax income more profoundly for the lowest-income households, though bringing full refundability to the CTC would make it far more effective in this regard. As they stand today, both credits lift millions out of poverty, ensuring that low-income women can have the money to buy groceries, pay bills, and purchase other necessities.
Rising Childcare Costs Can Partially Be Addressed Through the Tax Code
The cost of quality childcare is out of reach for many parents, resulting in tough decisions about childcare—from a parent altogether quitting a job or relying on care that may not be as consistent or high-quality as they would prefer. For some families, the Child and Dependent Care Tax Credit (CDCTC) helps cover a portion of the costs of childcare. It can be used for expenses associated with childcare when a parent searches for a job, goes to work, or attends school. This allows more mothers to stay in the workforce and continue earning money to provide for their family by staying at their job, building up more skills, or looking for work.
There are a lot of women who are the primary caregiver for their child and having the CDCTC in place eases some of the financial stress that comes with rising childcare costs. Recent reforms to the CDCTC, which have since expired, made the credit refundable, resulting in more low-income people benefitting from the credit with a boost to their after-tax income. Those reforms also dramatically increased the amount of expenses that qualify for the credit and the percentage of those expenses that can be reimbursed through the credit. The cost of childcare should not make a mother decide between which bills to pay or fall deeper into debt.
Federal Policymakers Must Use Recent Tax Policy Successes as a Guide for Helping Women
The American Rescue Plan (ARP), enacted in March 2021, was an example of policymakers restructuring the tax code to expand credit eligibility, increase benefits, and provide direct relief. The success of these changes and other policies certainly helped the economy, which in turn helped a multitude of women.
With the expiration of these tax reforms, the economic struggles that low-income women face have undoubtedly resumed. Federal policymakers know both the positive outcomes from ARP and ways they can dismantle the economic obstacles women face. That’s why they should pass legislation that extends the tax reforms laid out in ARP, such as the expansions of the EITC, CTC, and CDCTC.
State Lawmakers Should Not Prioritize Harmful Tax Cuts When Designing Tax Policy for Women
Much like at the federal level, state tax policy is also at a crossroads. But many of those state debates are headed down the wrong path, with state legislators proposing harmful tax cut bills that will not benefit women. In states like Mississippi, some of these lawmakers are going so far as to seek outright elimination of their income taxes. These and other bills would make state tax codes more regressive and reduce revenue for vital public services.
Rather than using temporary revenue surpluses as an excuse to pass permanent, top-heavy tax cuts, a far better use of those dollars would be tax reforms that lift women out of poverty and make tax systems fairer. For example, states could restructure their EITCs and increase their federal match rate. Washington, D.C. is a prime example of a place that lawmakers can follow with recent reforms putting the District’s EITC match rate on a path to 100 percent by 2026. Increasing a state’s EITC match rate would increase a woman’s tax refund and boost her income even more when combined with the federal EITC. Enacting or expanding Child Tax Credits or Child and Dependent Care Tax Credits also offer a promising avenue for state tax reform, as does expanding the “head of household” filing status—largely used by single mothers—in the handful of states that have failed to already do so.
Women are Multifaceted Individuals Who Deserve Straightforward Tax Policies
Tax policy affects the lives of women in myriad ways—from the amount they pay to the public services made possible by their tax dollars. Women’s History Month underscores the idea that women should be able to lead safe, healthy, and prosperous lives, which is affirming to so many women who fervently fought and are fighting for the rights of women and gender equity.
One of the keys to robust economic security for women is ensuring wise tax policy, aimed at equity, financial security, and raising revenue, and centering the needs and perspectives of women. Enacting fair and just tax policy is a chance to recommit to those principles.
Machi 24, 2022 - Wanawake wanaendelea kusonga mbele katika kazi, elimu na maeneo mengine ya maisha. Sasa ni uwezekano mkubwa zaidi kwamba wana digrii za chuo kikuu kuliko wanaume. Wanawake vijana wanafanya kazi kwa bidii kuliko vizazi vya zamani vya umri huo. Mwezi wa Historia ya Wanawake ni wakati wa kuheshimu mafanikio ya watu wanaojitambulisha kama wanawake leo na katika historia na kutambua maendeleo ya kijamii ambayo yalitupeleka hapa. Licha ya maendeleo makubwa, usawa wa kijinsia haujaonekana. Mnamo mwezi uliopita, timu ya taifa ya soka ya wanawake ya Marekani ilifikia makubaliano na Shirikisho la Soka la Marekani ili kusuluhisha kesi ya pamoja juu ya ukosefu wa usawa wa mshahara. Kwa wale kati yetu ambao si wanariadha nyota, tofauti ya mshahara wa kijinsia ipo, pia, ikisababisha mapato ya chini ya maisha na pesa kidogo za kuokoa kwa kustaafu. Gharama za utunzaji wa watoto zinaongezeka, na baadhi ya wanawake wanalazimika kuacha kazi ili kuwatunza watoto wao wadogo. Na licha ya mafanikio ya jumla katika mahali pa kazi na elimu, wanawake wana uwezekano mkubwa zaidi kuliko wanaume kuishi katika umaskini. """Sera ya kodi haiwezi kubadilisha desturi na mazoea ya kijamii ambayo husababisha mgawanyiko wa kijinsia, lakini sera ya maendeleo inaweza kuongeza usalama wa kiuchumi wa wanawake, na mazungumzo ya kisiasa yenye nguvu kuzunguka suluhisho hizi za sera zinaweza, labda, kusababisha mapenzi makubwa ya kisiasa na kijamii ya kujenga jamii ya haki na usawa." Mwezi wa Historia ya Wanawake ni nafasi ya kukumbuka kile kinachotokea kwa wanawake wakati sera ya kodi inakuwa ya maendeleo zaidi, inaongeza mapato, na husaidia kufanya kukuza familia kuwa rahisi zaidi. Sheria ya Kodi ya Maendeleo Zaidi Inahusu Wanawake Sehemu nyingi sana za sheria yetu ya kodi zina athari zisizo za moja kwa moja, mbaya kwa wanawake. Utajiri umekuwa ukiwemo kwa zaidi ya miongo minne, na mwenendo huo umeongeza kasi wakati wa janga la COVID-19. Kwa kawaida watu wanaopata faida ya mpango huo ni wazungu na wanaume. """Wakati utajiri wao unafikia viwango vipya, ni vigumu kuwa na kodi kwa sababu kanuni yetu ya kodi hutoa matibabu mazuri kwa mapato yanayopatikana kutoka kwa utajiri juu ya mapato yanayopatikana kutoka kwa kazi." Kwa kweli, mara nyingi sana, utajiri unaokusanywa hautozwa kodi hata kidogo. """Tunaposhindwa kuwatoza kodi wananchi wenye bahati zaidi, tunawapa wabunge wa kupinga serikali njia rahisi: hawawezi kufanya uwekezaji unaohitajika, wanadai, kwa sababu hakuna mapato ya kutosha." Hii inamaanisha kuwa matajiri wanatuacha sisi wengine nyuma ili tuchukue nafasi kwa kuendelea kutolipa sehemu yao ya haki. Katika nchi za Ulaya, watu wenye mapato ya chini wanatozwa kodi ya juu kuliko wale walio na mapato ya juu zaidi. Kwa sababu wanawake wana uwezekano mkubwa wa kuwa maskini na kupata mapato ya chini kuliko wanaume, wana uwezekano mkubwa wa kuanguka katika vikundi vya mapato ambavyo vinatozwa kodi zaidi kuliko matajiri. Wanawake weusi na Wahispania wanaathiriwa hasa, wana mapato ya chini zaidi. Kuhamisha kanuni za kodi za serikali katika mwelekeo wa maendeleo zaidi kungeshughulikia changamoto hizi na kuwafaidi wanawake. Mipango ya kodi ya maendeleo zaidi itasaidia serikali za shirikisho na serikali za majimbo kuongeza mapato wanayohitaji kuwekeza katika programu zinazosaidia wanawake kusitawi. Msaada wa kodi unaorudishwa unapaswa kutumiwa kuongeza mapato ya wanawake, sera za kodi zinapopangwa vizuri zinaweza kuwa na athari ya moja kwa moja, chanya kwenye maisha ya wanawake. Wanawake wana uwezekano mkubwa zaidi wa kuwa wafanyakazi wenye mshahara wa chini. Mfuko wa mkopo wa kodi ya mapato (EITC) unaweza kusaidia. Ni njia yenye ufanisi ya kuongeza mapato ya wanawake wenye mishahara ya chini. Kufufua marekebisho ya hivi karibuni ya mkopo na kufanya upanuzi huo kuwa wa kudumu, utafanya EITC iwe na ufanisi zaidi kwa kuruhusu kufikia wanawake zaidi wa mapato ya chini bila watoto nyumbani. Msaada wa kodi ya watoto (CITC) pia husaidia kuongeza mapato ya wanawake, lakini tu wale ambao ni mama wa watoto chini ya umri wa miaka 17. Upanuzi wa mwaka jana wa CTC, ambao sasa umekwisha, ambao ulijumuisha faida zilizoongezeka, kurudishwa kamili kwa familia zenye mapato ya chini, na uwezo wa kupata mkopo katika vipindi vya kila mwezi, uliwaondoa watoto kutoka umaskini na kuongeza mapato ya mama wengi kwa muda. Kuamsha mageuzi hayo ni kipaumbele cha haraka cha sera. Kwa mfano, kurudishwa kwa EITC na kurudishwa kwa sehemu kwa CTC kunasaidia zaidi mapato ya baada ya kodi kwa familia zenye mapato ya chini, ingawa kuleta kurudishwa kamili kwa CTC kungefanya iwe na ufanisi zaidi katika suala hili. Kwa sasa, mikopo hiyo miwili inawaondoa mamilioni ya watu katika umaskini, na kuhakikisha kwamba wanawake wenye mapato ya chini wanaweza kupata pesa za kununua vyakula, kulipa bili, na kununua vitu vingine vya lazima. Gharama ya huduma ya watoto ya ubora ni nje ya kufikia kwa wazazi wengi, na kusababisha maamuzi magumu kuhusu huduma ya watoto kutoka kwa mzazi kabisa kuacha kazi au kutegemea huduma ambayo inaweza kuwa si kama thabiti au ya ubora kama wangependa. Kwa familia fulani, mkopo wa kodi ya utunzaji wa watoto na wategemezi (CDCTC) husaidia kulipia sehemu ya gharama za utunzaji wa watoto. Kwa mfano, unaweza kutumia pesa hizo kulipia gharama za kutunza watoto, kama vile kutafuta kazi, kwenda kazini, au kwenda shule. Hii inaruhusu mama zaidi kubaki katika kazi na kuendelea kupata pesa ili kuandaa familia yao kwa kubaki katika kazi yao, kujenga ujuzi zaidi, au kutafuta kazi. Wanawake wengi ni walezi wa msingi wa watoto wao, na kuwa na CDC inasaidia kupunguza baadhi ya shida za kifedha zinazotokana na kuongezeka kwa gharama za utunzaji wa watoto. Mabadiliko ya hivi karibuni ya CDCT, ambayo tangu wakati huo yamekwisha, yalifanya mkopo huo kurudishwa, na kusababisha watu wengi wenye mapato ya chini kufaidika na mkopo huo na kuongeza mapato yao baada ya kodi. Mabadiliko hayo pia yaliongeza kwa kiasi kikubwa kiasi cha gharama ambazo zinastahili kwa ajili ya mikopo na asilimia ya gharama hizo ambazo zinaweza kulipwa kupitia mikopo. Gharama za utunzaji wa watoto hazipaswi kumfanya mama aamue ni bili gani za kulipa au kuanguka ndani ya madeni. Wanasayansi wa Fedha wanapaswa kutumia mafanikio ya hivi karibuni ya sera ya kodi kama mwongozo wa kusaidia wanawake Mpango wa Uokoaji wa Amerika (ARP), ulioanzishwa mnamo Machi 2021, ulikuwa mfano wa watunga sera wa kurekebisha kanuni ya kodi ili kupanua haki ya mkopo, kuongeza faida, na kutoa misaada ya moja kwa moja. Mafanikio ya mabadiliko haya na sera nyingine kwa hakika yalisaidia uchumi, ambao kwa upande wake ulisaidia wanawake wengi. Baada ya marekebisho hayo ya kodi, bila shaka matatizo ya kiuchumi yanayowakabili wanawake wenye mapato ya chini yameanza tena. Wanasayansi wa hali ya juu wanajua matokeo mazuri ya ARP na njia ambazo wanaweza kuondoa vikwazo vya kiuchumi ambavyo wanawake wanakabiliwa. Kwa hiyo, ni lazima wapate sheria ambayo inaongeza marekebisho ya kodi yaliyowekwa katika ARP, kama vile upanuzi wa EITC, CTC, na CDCTC. Wanachama wa bunge la jimbo hawapaswi kuweka kipaumbele kupunguzwa kwa kodi wakati wa kubuni sera ya kodi kwa wanawake - kama vile katika ngazi ya shirikisho, sera ya kodi ya jimbo pia iko katika makutano. Lakini majadiliano mengi ya serikali yanaelekea njia isiyofaa, na wabunge wa serikali wanapendekeza sheria zenye madhara za kupunguza kodi ambazo hazitakuwa na faida kwa wanawake. Katika majimbo kama Mississippi, baadhi ya wabunge hawa wanaenda mbali sana kama kutafuta kuondolewa kabisa kwa kodi zao za mapato. Hizi na muswada mwingine ungefanya kanuni za kodi za serikali kuwa za kurudi nyuma zaidi na kupunguza mapato kwa huduma muhimu za umma. Badala ya kutumia ziada za mapato ya muda kama kisingizio cha kupitisha kupunguzwa kwa kodi kwa muda mrefu, matumizi bora zaidi ya dola hizo yangekuwa mageuzi ya kodi ambayo yanainua wanawake kutoka umaskini na kufanya mifumo ya kodi kuwa sawa. Kwa mfano, majimbo yanaweza kurekebisha EITCs zao na kuongeza kiwango cha mechi ya shirikisho. Washington D.C. ni mfano bora wa mahali ambapo wabunge wanaweza kufuata na mageuzi ya hivi karibuni kuweka kiwango cha mechi ya EITC ya Wilaya kwenye njia ya asilimia 100 ifikapo 2026. Kuongeza kiwango cha mechi ya EITC ya jimbo itaongeza kurudishwa kwa kodi ya mwanamke na kuongeza mapato yake hata zaidi wakati unaunganishwa na EITC ya shirikisho. "Kupitisha au kupanua mikopo ya kodi ya watoto au mikopo ya kodi ya utunzaji wa watoto na tegemezi pia hutoa njia ya kuahidi kwa mageuzi ya kodi ya serikali, kama vile kupanua hali ya kufungua ""kichwa cha kaya"" - inayotumiwa sana na mama wa pekee - katika majimbo machache ambayo yameshindwa kufanya hivyo." Wanawake ni Watu wa Multifaceted Wanaostahili Sera za Kodi za moja kwa moja Sera za Kodi zinaathiri maisha ya wanawake kwa njia nyingi - kutoka kwa kiasi wanacholipa kwa huduma za umma zinazofanywa iwezekanavyo na dola zao za kodi. Mwezi wa Historia ya Wanawake unasisitiza wazo kwamba wanawake wanapaswa kuwa na uwezo wa kuongoza maisha salama, afya na mafanikio, ambayo inathibitisha kwa wanawake wengi ambao walipigana na wanapigania haki za wanawake na usawa wa kijinsia. "Mmoja wa funguo za usalama thabiti wa kiuchumi kwa wanawake ni kuhakikisha sera ya kodi ya busara, inayoelekezwa kwa usawa, usalama wa kifedha, na kuongeza mapato, na kuzingatia mahitaji na mitazamo ya wanawake. """ Kuanzisha sera ya kodi ya haki na ya haki ni nafasi ya kujitolea tena kwa kanuni hizo.