Another Debate On The "Luxury" Tax On Tampons
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SALT LAKE CITY (CBSDFW.COM/AP) — The international debate over whether to tax tampons and other feminine hygiene products has made its way to the United States and conservative Utah, where a bill is set to be heard by a committee made of only men.
Some say governments that make money this way penalize women for their biology. That perspective has picked up momentum, with at least five U.S. states dumping taxes on such products.
There are currently 40 states, including Texas, that impose a tax on tampons and other menstrual products. It's billed either as a regular sales, gross receipts or luxury tax. A luxury tax applies to products or services deemed unnecessary or nonessential. In Texas, this means items like contact solution are sold tax free -- but not tampons.
One state official explained that when it comes to over-the-counter drugs, only ones labeled with a drugs facts panel are exempt from sales tax.
In 2013, tampons in Texas were deemed as "props." As the Texas Senate prepared to debate the abortion bill State troopers checked the bags of each person entering the gallery and tossed tampons, maxi-pads, perfume bottles, moisturizers, pencils and other items into the garbage. The Senate Sergeant-At-Arms at the time, Rick DeLeon, said that no props would be allowed into the Senate gallery, per decorum rules.
The tampon tax isn't federal, states decide what items will or will not be taxed.
President Barack Obama first learned of the tampon feminine sanitary product tax last month. When asked about it by a YouTube blogger he said, "I have no idea why states would tax these as luxury items. I suspect it's because men were making the laws when those taxes were passed." The President then wen ton to encourage Americans to press for change. "I think it's pretty sensible for women in those states... to work to get those taxes removed."
In Utah, the tax free proposal could face a steep challenge, as some worry that eliminating the sales tax will put a dent in state revenue streams.
Most states don't tax prescription drugs or food, according to the National Conference of State Legislatures. Utah keeps with the trend when it comes to medication, but it still taxes most groceries.
Feminine hygiene products should be considered necessities - like medicine and food - not luxuries, said Stephanie Pitcher with the Utah Women's Coalition.
"Having a period is not a choice for women," Pitcher said.
Pennsylvania and Minnesota are among states that have eliminated these taxes. A handful of other states, including California, have seen similar proposals brought before their legislatures this year. In Wisconsin, a Democratic lawmaker has proposed providing free tampons in all public buildings.
Republican politicians often make the push to cut taxes. In Utah, it's a Democrat.
Some critics have dismissively dubbed state Rep. Susan Duckworth's proposal "the tampon bill."
Duckworth said she worries that nickname may hurt the bill's chances during a hearing that could come this week before a tax committee in Utah's House of Representatives.
"I'm going into an all-male committee, and I just don't believe they're going to have much sympathy," she said.
The bill also calls for making adult incontinence products and children's diapers tax free. She hopes that by making her plan broader than just feminine hygiene items, it will earn more support, since all are medically necessary.
The proposal could save residents who use these products at least $30 each year in taxes, Duckworth said.
But small savings for taxpayers would have a much bigger impact on the state budget, according to estimates from Utah's legislative budget staff. Removing the sales tax on these products would reduce revenue to the general fund by over $1 million next year.
Utah's general fund is already shrinking because of Medicaid costs said Utah House Speaker Greg Hughes, a Republican. The fund also is used to pay for such key state programs as transportation, corrections and health and human services, he said.
Hughes said Utah lawmakers may need more time to study the issue before their legislative session ends in mid-March.
Last year, Canada removed taxes on feminine hygiene products after receiving unanimous political support. For almost two decades, Britain set the tax on sanitary products at 5 percent, the lowest-possible level, and leaders there have considered doing away with the tax entirely.
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