New Report on the Feminization of Poverty Says Big, Beautiful Bill Could be Bad for Women

New Report on the Feminization of Poverty Says Big, Beautiful Bill Could be Bad for Women Abby O'Brien

A few weeks ago, the Colorado Fiscal Institute (CFI) and the Women’s Foundation of Colorado released a report called “Deepening the Divide: H.R. 1 and the Feminization of Poverty.”

It’s about what that federal legislation means for women’s economic security in Colorado. Shana McClain, research manager at the Colorado Fiscal Institute, provided the analysis for the report. She joined KGNU’s Abby O’Brien to discuss what the report’s findings mean for women in Colorado.

H.R. 1, what most people know as the “One Big, Beautiful Bill Act” is a major federal tax and spending package that passed in July of this year. According to the CFI, women, especially single mothers, are disproportionately represented in poverty and rely more on programs that the bill changes. Among those changes are Medicaid work requirements, SNAP work requirements, changes to school vouchers, tax deductions and refundable credits.

The report makes the case that something like the new tipped wage deduction, which allows tipped workers to deduct up to $25,000 in qualified tip income, will deepen the economic divide for women in Colorado. This is because women, and specifically women of color, are more likely than men to make less than $25,000 in tipped income.

“If you’re working in fine dining, this tip deduction would be great. Because you get a lot of your money from tips, so you can deduct that 25,000,” said McClain. “If you’re doing someone’s nails, you’re probably not gonna get as much in tips to be able to deduct that amount.”

The report proposes refundable tax credits so that taxpayers who aren’t meeting those thresholds can still benefit just as much. It also recommends that Colorado use its power to protect access to health care, and invest in public education and child care.

This story aired on the Morning Magazine, KGNU’s weekday morning show featuring in-depth discussions on local news issues. Click here to listen to other episodes of the Morning Magazine.