The tax levied on menstruation products, sometimes known as the “tampon tax,” has been up for discussion for many years in the United States. Tampons and other menstruation products are currently subject to a 6% tax in Pennsylvania. These goods are regarded as “tangible personal property” by the state’s Department of Revenue and as such are chargeable with sales tax.
However, there have been initiatives in Pennsylvania to do rid of this tax on menstrual products. In reality, a measure to exempt feminine hygiene items from sales tax was presented in 2019. The menstruation Equity Act, as the measure is often known, aims to make menstruation products accessible and cheap to all women in the state, regardless of their financial situation.
Some supporters contend that the tampon tax is unfair to women because menstrual products are not seen as a luxury but rather a need. Additionally, they make the point that taxing menstruation products adds to the burden already felt by low-income women who cannot afford to buy these items.
Since decades, people have been debating whether it is preferable to tax income or consumption. Because people with greater incomes pay more in taxes, income tax supporters claim that it is a more equitable system. Conversely, proponents of consumption tax claim that the system is more effective since it stimulates saving and deters expenditure on non-essential things.
As people pay taxes on their expenditures rather than their income, one of the key benefits of a consumption tax is that it promotes investment and saving. Because there are fewer deductions and exemptions to take into account, the tax system is also made simpler.
A consumption tax can be regressive, which means that it may disproportionately affect low-income households. This is one of its main drawbacks. Additionally, it burdens companies because they are required to collect and remit taxes on all sold goods and services.
Consumption tax proponents contend that because it is more effective and promotes investment and saving, it is a superior system to income tax. Additionally, it streamlines the tax code and lessens the need for exemptions and deductions.
Use tax, a tax on products and services bought outside of Pennsylvania but utilized there, was first implemented in 1951. The tax was put in place to make sure that the state could get money from the sale of goods and services that weren’t taxed at the time of purchase. Today, most items and services bought out of state and utilized in Pennsylvania are subject to use tax.
For taxpayers who buy taxable goods for their own use or consumption, the Pennsylvania Department of Revenue has established a tax account called a consumer use account. This account’s goal is to make sure that customers pay the appropriate amount of tax for their transactions. Menstrual products are taxed differently in each state, and some states have even omitted these items from sales tax. Menstrual products are still subject to a sales tax in Pennsylvania, which has been a point of contention and advocacy for individuals who think that these products are essential and shouldn’t be taxed further.
Customers must pay sales tax on specific goods because doing so helps the government make money. At the point of sale, sales tax is often added as a percentage of the item’s total cost. Public schools, road repair, and healthcare are just a few of the services and initiatives that are funded by sales tax. Certain goods, like menstruation products, may occasionally be excluded from sales tax or subject to a lower tax rate.