Being a woman comes with financial costs. This we know! The theoretical pink tax may be the most visible example where women are flagrantly charged triple the price for basic toiletries (like deodorant) compared to those who inherited the Y chromosome. For women of colour there’s an additional tax; one economist, activist and US-based writer Anna Gifty Opoku-Agyeman calls the double tax – the compounded cost of racism and sexism. “Women’s lives aren’t just defined by gender inequality; they’re also defined by other forms of inequality, such as race and class,” explains Opoku-Agyeman.
In her new book The Double Tax, Opoku-Agyeman speaks to hundreds of women about the unequal burden they face simply by living their life. Through the lens of mothers, professionals, carers and more, she exposes the true cost of womanhood, and most poignantly the impact it has on women of colour.
As we enter the new year, we ask Opoku-Agyeman how we can navigate our way to a financial future that’s less taxing and more rewarding both mentally and emotionally.
What would you say are the most financially damaging “double taxes” that women face today?
It really depends on where you are in life. If we’re talking about what double tax is felt by most Black women, I’d say you really feel it in the hair and beauty industry. In the UK, one in five Black women feel pressure to straighten their hair for work. A service that can cost over £150. The other double taxes I mention throughout the book surround motherhood, caregiving, professional life, and retirement.
Many women of colour earn less, save less, and retire with less. What practical steps can women take right now to close their own wealth gap?
Transparency and community are extremely important. If you’re in full-time employment joining a union is vital if you want to save more, earn more, and hopefully retire with more. Find your tribe and talk to other women about finances. This can be your sister, cousin, friend or colleague. Discussing the topic head on breaks down barriers and relieves the mental burden. We underestimate that it takes a village to accomplish our goals in the long-term. I’ve seen this picking up speed online, where people come together to fund somebody’s educational path or invest in somebody’s business. We can be more resourceful about how we build wealth because many structures are, quite frankly, built to derail our ability to build wealth.
The motherhood penalty and the “care tax” are still major obstacles today. What kind of policy changes or workplace reforms do you believe would make the biggest difference for working mothers?
I understand that in the UK you pay quite a bit in taxes. Even women who are well-off seem to spend thousands on childcare per year. Having more quality public childcare options with resources channelled toward children from all backgrounds, especially from low-income and underserved areas, can pay off in the long run.
Workplaces also need to be intentional about seeing mothers as human. What happens is that women are punished for choosing motherhood because society asks us to do this, then says, “Actually, no, you’re not productive anymore. We don’t want to pay you, hire you, or promote you.” That’s an unfair burden to place on women. That stigma around being a mother needs to disappear, and it begins with being open about how those costs manifest in the workplace.
Can you share any personal stories from women you interviewed when writing your book that particularly shaped your understanding of how the double tax operates day to day?
So, we put out a call across several platforms – social media, LinkedIn, women’s organisations – and heard back from about 4,000 people. We then narrowed it down to 100 random individuals because that’s all we had time and resources to interview.
We spoke primarily to Black and Caucasian women. These women tend to exist on the extremes based on the data. It was interesting to hear what emerged. White women shared that they deal with many patriarchal norms in the workplace; for example, unfair expectations, lack of promotion, unsupportive behaviour and so on. Interestingly, Black women deal with the same issues except with a racist twist.
All women deal with non-actionable feedback, but much of the feedback given to White women strikes a positive tone, whereas Black women are villainised. What was even more interesting to learn is that while White women deal with the patriarchy, Black women deal with both the patriarchy and White women. New research from Harvard has shown White women can also become another barrier for Black women in the workplace too.
Many women of colour are turning to side hustles to build financial independence. Do you see this as an effective response to systemic inequities, or does it risk placing more burden on individuals to “work around” broken systems?
Wherever you find yourself – in corporate, government, or entrepreneurship – the double tax will be there because racism and sexism are pumped through the veins of our society globally. The reality is women of colour face many barriers when raising capital and running businesses. People don’t trust us, they don’t believe us, and that has implications for how we’re treated.
The announcement from the founder of Plant Made, Ama Amo-Agyei illustrates this. Ama shared that she was pushed out of the next phase of a business she had started with her family because the investors no longer valued her insights. It is my hope that this will be the beginning for her, considering that just a few short weeks after Ami Cole founder of Diarrha N’Diaye was appointed to lead Beauty at Skims.
How can potential allies (i.e., employers or policymakers) actively contribute to dismantling the double tax, rather than simply acknowledging it?
Allies must put their money where their mouth is. There’s a lot of cheap talk happening right now, especially in the current climate where there’s really no incentive to double down on diversity, equity, and inclusion or to support Black-owned, women of colour, and minority-owned initiatives.
My book lays out clear ways that allies can show up in a number of different arenas. They should be actively investing in how to sustain and build up systems that support vulnerable communities, rather than a one-time effort.
There’s growing conversation around community-based wealth building, like co-ops, mutual aid, or collective investing. Do you think these models could help counteract the effects of the double tax?
In this current era of politics and the cost-of-living crisis, we are all we’ve got. Expecting people in power to course-correct and care meaningfully about us when they have no incentive to do so is a fool’s errand.
When we think about the most successful and long-lasting communities in our world, this is how they operate, through a medium of community. Right now, in the States, people who can’t afford food rely on food banks and churches having free food available. This is what it looks like people show up for their neighbours. Because that’s all we’ve got.
That is why the double tax is fundamentally an issue of empathy. Many people are apathetic about the state of the world and their fellow neighbours. Take care of each other is the social contract we must have.
Looking ahead, what gives you hope that the financial landscape for women will look fairer and more equitable in the next decade?
For me, what gives me hope is that the next generation isn’t happy with this level of injustice. I saw recently that Billie Eilish was in a room full of wealthy people at the Wall Street Journal, and she asked the audience, “Why are you a billionaire?” It’s a very simple question, but it challenges people’s ethics, morals, and priorities. If you’re a billionaire and somebody next to you is starving, why are you a billionaire? What’s driving your need to accrue wealth relentlessly? The next generation is asking these questions loudly, boldly, and without fail. There’s a conversation happening with Gen Z and Gen Alpha about “Wait, things aren’t fair. Why aren’t things fair? Why are my friends having a harder time finding food and groceries day-to-day? What can I do to make it better?”
How to strengthen your financial position as a woman
- Get into a community
- Network to find groups that support and share financial opportunities to level up your finances
- Create multiple streams of income
- Grow your earning potential by freelancing or consulting in your field
- Buy gender neutral toiletries
- Build a freedom fund
- Contribute towards a saving pot that gives you the power to leave a toxic job or negotiate without fear
Curb the pink tax by discovering gender neutral brands
Above, from left to right: Vyrao Mamajuju Eau de Parfum, £38 // Nackt Manon Shoe, £130 // Apres Youth Stone Signet Ring Chrysopase, £195
