NCRW: RESEARCH-FOR-ACTION CLEARINGHOUSE

Just as there is no one generic taxpayer, there is no one generic woman taxpayer. Our tax bills differ based on the amount and sources of our income and the configurations of our households. But overall, most women share certain traits in relationship to tax and spending policies, and that relationship has changed in recent decades as more women become breadwinners and as family patterns have altered. So who are today’s women taxpayers? How do they differ from male taxpayers? And what are the differences among women?

First, women earn less than men. In 1999, women constituted 49 percent of all federal income taxpayers, but on average they earned only 57 percent of what men earned. (1) This is true for women at all income levels because they work part-time more often than men, because they tend to hold lower paying jobs, and because they are often paid less for comparable work.

In fact, in 2003, when women were 48 percent of the workforce, they were 61 percent of the minimum wage earners.(2) The Institute for Women’s Policy Research (IWPR) reports that over the course of a 15 year study, 42 percent of men earned more than $50,000 annually while only 9 percent of women reached that salary level. (3) Even as they reach managerial positions, women are paid less than men. A recent study by the General Accounting Office found that women managers earned less than their male counterparts in the ten industries that employ the majority of women—on average women earned .77 cents for every dollar their male counterparts earned in 2000. Between 1995 and 2000, that gap widened in seven of the industries studied (even after controlling for age, marital status, and race). (4)

In 2003, according to Census Bureau data, the median earnings for full-time, year-round women workers fell to $30,724, from $30,895 in 2002. Comparable earnings for men were essentially unchanged at $40,668.
In 2003, women in the workforce full-time working women earned 76 percent of what men earned, compared to 77 percent in 2002. (5)

Over a lifetime this gap can make a considerable difference. According to IWPR, during the course of 15 years of work, women in the prime of their work lives (ages 26-59) make only 38 percent of what men earn during the course of 15 years of work.(6)

Women therefore tend to be clustered in lower income groups. In 2003, women constituted 63 percent of those in the lowest income quintile, where the average income is $8,201; and 55 percent of those in the second lowest, with an average income of $21,478; but only 41 percent of those in the highest, where incomes averaged $127,146. In 2004, median earnings for women declined for the fourth year in a row to an average of $22,200. (7)

Source: US Department of Labor, Bureau of Labor Statistics. Consumer Expenditure Survey 2003. Table 55. Quintiles of income before taxes: Shares of aggregate expenditures and sources of income [online].

Women are less likely to have a financial cushion. Continued pay inequity, along with more frequently-interrupted work patterns, also means that women are more likely to live paycheck to paycheck throughout their work life, with less in savings for current needs and lower pensions later in life. While 28 percent of all Americans—both men and women—recently reported spending all of their earnings every month,(8) more younger single women (53 percent) said they were living paycheck to paycheck than did single younger men (42 percent).(9) Younger single women (aged 25-34) also spent a larger percent of their yearly after-tax income compared to men—99 compared to 88 percent.(10) They are thus more dependent on social safety net programs in times of crisis or economic downturn. As they age, a greater percentage of women are single compared to men, making them more dependent on a single pay-check for income and savings – and more vulnerable to catastrophic events like job loss or severe illness. Sixty percent of older women in America today are single (whether as a result of divorce, widowhood, or never being married), compared with 23.5 percent of men.

Women are racially and ethnically diverse , reflecting the overall diversity of the nation.

Source: Werschkul, Misha and Erica Williams. 2004. The Status of Women in the States. Institute for Women’s Policy Research, Appendix Table 1 [online].

And their earnings vary according to race. White and Asian American Women continue to earn considerably more, on average, than African-American and Hispanic women.

The earnings of Native American women, not included in the chart above, are lower than all but Hispanic women. Data from the Urban Institute, compiled and analyzed by the Institute of Women 's Policy Research, showed that in 1999 Native American women employed full time year round earned $25,500 compared to $33,100 for Asian American women, $30,900 for white women, and $27,600 for African American women.(11)

Women’s poverty rates are higher than men’s. Since 2001, the number of women living in poverty has risen steadily. In 2004, 12.7 percent—or 14.3 million women—compared to 9.3 percent of men were living in poverty.(12) Poverty rates also differ by race—African-American women and Latinas have poverty rates more than twice those of white women.(13)

And their taxes are affected by family status. Whether a woman is married, single, or a head of household with dependents determines her tax status. Just over half of all US households are married couple families. (14) In 1999, 60 percent of joint tax returns included two earners, and 75 percent of those filings showed men earning 50 percent or more of the total reported income from wages and salaries.(15) But 52 percent of wage earners who filed individually rather than jointly were women. (16)

In general, women-headed households have about one-half the income and less than one-third the wealth of other American households. (17) Almost 21 percent of families with children under 18 are headed by women, (18) although this varies substantially according to the racial and ethnic background of the family. In 2000 about 50 percent of African- American, 22 percent of Hispanic, 16 percent of White, 10 percent of Asian-American, , and 30 percent of Native-American families with children under 18 were headed by women. (19)

Source: Werschkul, Misha and Erica Williams. 2004. The Status of Women in the States. Institute for Women’s Policy Research. p60 [online].

Other variables also impact women as taxpayers and consumers of tax-supported services:

Immigrant women are 10.9 percent of the total female population. In 2003, the real median income of foreign born households was $37,499 compared to $47,347 for native born households, and their poverty rates were higher as well—17.2 percent for the foreign born versus 11.8 percent for the native born. (20) Immigrants pay income, payroll, and sales taxes, but a variety of federal and state laws make them ineligible for many forms of public assistance. The estimated 6 million undocumented immigrant workers (about 5 percent of our workforce), who pay Social Security, income, and other taxes do not qualify for benefits at all, except in extreme circumstances. (21) Even undocumented workers with official Individual Taxpayer Identification Numbers (ITIN) allowing them to file tax returns are not eligible for benefits like the Earned Income Tax Credit when they submit their returns.

Girls and Young Women: In 2000, approximately 1,342,000 households were headed by young women 15-24 years old, 10.5 percent of all female-headed households. Young women and girls are an active part of the economy as spenders: girls and young women 8-21 years of age spend approximately $2,564 per year, totaling approximately $41 billion in sales. (22) They are also significant wage earners: a Annual earnings of employed teens exceed $85 billion. (23) Young women at the age of 14 are slightly more likely than their male counterparts to work, but by age 15, the rates of employment are essentially the same.(24)

Lesbian households numbered 326,066 in 2000 according to census data, although the data are incomplete. (25) Information about lesbians is often conflated with data about gay men, who typically earn more than lesbians. But recent data suggests that coupled lesbians earn more than other women but less than heterosexual couple households. The poverty rate of same-sex households stood at 5 percent in 2000, about half the national poverty rate. (26)

Women business owners constitute a growing proportion of the self-employed. In 1975, women were one of every four self-employed workers, but by century’s end, they constituted 40 percent of self-employed workers. (27) However, according to the Small Business Administration, 87 percent of businesses owned by women earn under $50,000 annually. These businesses tend to be small and in economic sectors that have lower incomes, such as beauty parlors, small specialty shops, catering services, and childcare.

Women with Disabilities: There are 28 million women living with disabilities in the US. (28) The rate of disability is higher for women than it is for men in nearly all racial and ethnic categories. (29) Of the 24.3 million women who receive some type of Social Security benefits, slightly more than 10 percent of them receive disability benefits as workers, and another 11.4 percent receive benefits as the spouses of disabled or retired workers.(30) Although white women are more likely than other women to receive Social Security retirement benefits, about twice as many Black women (20 percent) and three times as many women of other races (including Asian Pacific Islanders, American Indians, and Alaska Natives) than white women (9 percent) receive disability benefits (31). Women receiving benefits as disabled workers also receive less than men: in 2003, women received $734.40 on average monthly, and men received $965.90. (32) Women with a work-related disability also experience higher poverty rates—about 34 percent—than men with a work-related disability (24 percent). (33)

Thus, while women are broadly diverse and experience tax and spending policies according to their individual circumstances, they also share a common position within our society and within our economy. In order to understand how tax policy affects each woman individually, we must see how it affects us as a group. In order to act and advocate for real tax reform, we must see some of the underlying structures that affect all women, and we must understand some of the principles that serve all of us well, despite our individual differences. What follows are seven points that every woman must know.

1. Yau, Ellen, Kurt Gurka and Peter Sailer. 1999. Comparing Salaries and Wages of Women Shown on Forms W-2 to Those of Men, 1969-1999 [online]. Available from World Wide Web: (http://www.irs.gov/pub/irs-soi/99inw2wm.pdf)

3. Rose, Stephen and Heidi Hartmann. 2004. Still a Man’s Labor Market: The Long-Term Earnings Gap. Institute for Women’s Policy Research [online]. Available from World Wide Web: (http://www.iwpr.org/pdf/C355.pdf)

4. General Accounting Office. April 2002. Women in Management: An Analysis of Current Population Survey Data [online]. Available from World Wide Web: (http://www.gao.gov/new.items/d02648t.pdf )

5. National Women's Law Center . 2004. NWLC Analysis of New Census Data Finds Poverty of Women and Children Increases for Third Straight Year [online]. Available from the World Wide Web:(http://www.nwlc.org/details.cfm?id=1986&section=newsroom)

6. Rose, Stephen and Heidi Hartmann. 2004. Still a Man’s Labor Market: The Long-Term Earnings Gap. Institute for Women’s Policy Research [online]. Available from World Wide Web: (http://www.iwpr.org/pdf/C355.pdf)

7. National Women’s Law Center . 2005. New Census Data Show Women’s Poverty Increases for Fourth Year, Women’s Wages Decrease, Despite Economic Recovery: Number of Uninsured Women Rises Since 2000 as Congress Considers Medicaid Cuts [online]. Available from World Wide Web: ( http://www.nwlc.org/details.cfm?id=2385&section=newsroom )

8. ACNielsen. 2005. Large Number of U.S. Consumers Continuing to Live Paycheck to Paycheck [online]. Available from World Wide Web: (http://us.acnielsen.com/news/20050613.shtml)

9. Women’s Institute for a Secure Retirement. 2002. Some Statistics from Your Future Paycheck [online]. Available from World Wide Web: (http://www.wiser.heinz.org/paycheckpoints.html)

10. Costello, Cynthia, Vanessa Wight, and Anne Stone. 2003. The American Woman 2003-2004. Women’s Research and Education Institute, p 155. Palgrave Macmillan.

11. Werschkul, Misha and Erica Williams. 2004. The Status of Women in the States. Institute for Women’s Policy Research. p19 [online]. Available from World Wide Web: (http://www.iwpr.org/States2004/PDFs/National.pdf)

12. National Women’s Law Center . 2005. New Census Data Show Women’s Poverty Increases for Fourth Year, Women’s Wages Decrease, Despite Economic Recovery: Number of Uninsured Women Rises Since 2000 as Congress Considers Medicaid Cuts [online]. Available from World Wide Web: ( http://www.nwlc.org/details.cfm?id=2385&section=newsroom )

13. Werschkul, Misha and Erica Williams. 2004. The Status of Women in the States. Institute for Women’s Policy Research. p32 [online]. Available from World Wide Web: (http://www.iwpr.org/States2004/PDFs/National.pdf)

14. Werschkul, Misha and Erica Williams. 2004. The Status of Women in the States. Institute for Women’s Policy Research. p60 [online]. Available from World Wide Web: (http://www.iwpr.org/States2004/PDFs/National.pdf)

15. Yau, Ellen, Kurt Gurka and Peter Sailer. 1999. Comparing Salaries and Wages of Women Shown on Forms W-2 to Those of Men, 1969-1999, p1 [online]. Available from World Wide Web: (http://www.irs.gov/pub/irs-soi/99inw2wm.pdf)

16. Yau, Ellen, Kurt Gurka and Peter Sailer. 1999. Comparing Salaries and Wages of Women Forms W-2 to Those of Men, 1969-1999 [online]. Available from World Wide Web: (http://www.irs.gov/pub/irs-soi/99inw2wm.pdf)

17. Consumer Federation of America . 2004. Research Shows that Women on Their Own Face Financial Challenges. January 12 [online]. Available from World Wide Web: (http://www.consumerfed.org/womenfinance.pdf)

18. Werschkul, Misha and Erica Williams. 2004. The Status of Women in the States. Institute for Women’s Policy Research. p60 [online]. Available from World Wide Web: (http://www.iwpr.org/States2004/PDFs/National.pdf)

19. Werschkul, Misha and Erica Williams. 2004. The Status of Women in the States. Institute for Women’s Policy Research. p60 [online]. Available from World Wide Web: (http://www.iwpr.org/States2004/PDFs/National.pdf)

20. US Census Bureau. August 2004. Income, Poverty, and Health Insurance Coverage in the United States: 2003. Current Population Reports [online]. Available from World Wide Web: (http://www.census.gov/prod/2004pubs/p60-226.pdf)

22. Girls Incorporated. June 2004. Girls and Taxes: Fast Facts. Compiled by Melody Slashinski. Presented at the 2004 National Council for Research on Women Annual Conference: Women’s Voices Matter: Women Elect to Speak , Washington, D.C.

23. Market Research.com. 2002. The U.S. Teens Market: Understanding the Changing Lifestyles and Trends of 12- to 19- Year Olds [online]. Available from World Wide Web: ( http://www.marketresearch.com/map/prod/746398.html )

24. Girls Incorporated. June 2004. Girls and Taxes: Fast Facts. Compiled by Melody Slashinski. Presented at the 2004 National Council for Research on Women Annual Conference: Women’s Voices Matter: Women Elect to Speak , Washington, D.C

25. Werschkul, Misha and Erica Williams. 2004. The Status of Women in the States. Institute for Women’s Policy Research. p58 [online]. Available from World Wide Web: (http://www.iwpr.org/States2004/PDFs/National.pdf)

27. Caiazza, Amy. 2002. The Status of Women in the States. Institute for Women’s Policy Research. p38.

28. US Department of Health and Human Services, Office of Women’s Health. The National Women’s Health Information Center Website [online]. Available from World Wide Web: (http://www.4woman.gov/wwd)

29. Disability Statistics Rehabilitation Research and Training Center. 1996. Disability Among Racial and Ethnic Groups. US Department of Education, National Institute on Disability and Rehabilitation Research [online]. Available from World Wide Web: (http://dsc.ucsf.edu/pdf/abstract10.pdf)

30. Institute for Women’s Policy Research. March 2005. Who are Social Security Beneficiaries? [online]. Available from World Wide Web: (http://www.womenandsocialsecurity.org)

31. Institute for Women’s Policy Research. March 2005. Who are Social Security Beneficiaries? [online]. Available from World Wide Web: (http://www.womenandsocialsecurity.org)

33. Jans, L., and S. Stoddard. 1999. Chartbook on Women and Disability in the United States . An InfoUse Report. US National Institute on Disability and Rehabilitation Research [online]. Available from World Wide Web: (http://www.infouse.com/disabilitydata/womendisability/3_6.php)

Who are Women Taxpayers?