State lawmakers in the past couple of years have debated whether to exempt feminine hygiene products from the sales tax. However, despite the “tampon tax” moniker, a new report by Tax Foundation Economist Nicole Kaeding explains that there is no punitive tax on tampons. Exempting these products from the sales tax base will simply continue the trend of narrowing tax bases and rising tax rates.
“Advocates continue to push states to remove feminine hygiene products from their state sales tax bases, calling the sales taxation a ‘tampon tax,'” Kaeding writes. “Tampons and other feminine hygiene products are not subject to a special or unique tax in any state. Currently, 12 states do not include feminine hygiene products in their sales tax base for a variety of reasons, but moves to exempt these goods from taxation violate the principles of sound sales tax policy.” Continue Reading