By virtually each financial measure, girls are flourishing in right now’s economic system. Feminine unemployment is at present at a 50-year low of 3.9 p.c, lower than half the speed it was as just lately as President Obama’s second time period. This summer time, the feminine unemployment charge reached its lowest degree in 65 years. When you think about how small the feminine labor power was again then, it is protected to say it is by no means been simpler for a lady to discover a job than it’s right now.
Ladies are additionally leaving the labor market sidelines to return to the workforce in droves. Prime-age feminine employment has elevated by 1 million since November 2016. This yr, the prime-age feminine employment charge lastly returned to its pre-Nice Recession degree.
Whereas male wages have stagnated in latest a long time (excluding the previous couple of years), girls’s have elevated markedly. Ladies are 15 p.c extra doubtless than males to have a university diploma, and that unfold will increase amongst latest graduates.
The variety of women-owned companies has grown by 114 p.c over the previous 20 years in comparison with simply 44 p.c general. There are an estimated 11.6 million women-owned companies, about 40 p.c of the overall companies within the nation.
But entrepreneurship has traditionally been an space the place girls have lagged. Based on a report by the Kauffman Basis, girls are half as doubtless as males to begin a enterprise. This artificially depresses financial vibrancy. On the similar time, the report argues that girls may very well be higher entrepreneurs as a result of they’re extra prudent threat takers, understanding when to benefit from alternatives, however avoiding “foolhardy dangers” that usually journey up their male counterparts.
Kauffman factors to a significant hurdle to higher feminine entrepreneurship: baby care. It means that child-care burdens swamp feminine entrepreneurship alternatives in a manner that they don’t for males. It argues that if public coverage might assist overcome such challenges, girls would “unleash a wealth of ingenuity and creativity that may spark a brand new period of entrepreneur-led progress in America.”
Such public coverage took impact this yr within the type of tax cuts. A central part of the tax cuts is a doubling of the kid tax credit score to $2,000 per baby. This isn’t a deduction however a direct tax invoice offset, that means a mom with two children will save $4,000 in consequence. The tax laws additionally makes the primary $1,400 of this credit score refundable, that means that low-income moms truly get a payout along with their common tax refund. It additionally creates a tax credit score for non-dependent kids — assume college-aged — for the primary time.
Permitting odd moms to maintain extra of their hard-earned cash makes it simpler for them to pay for rising child-care prices, giving them the liberty to pursue their entrepreneurial passions.
One other side of tax cuts — the brand new 20 p.c small enterprise deduction — can also disproportionately assist girls as a result of it extends to sole proprietorships. This helps entrepreneurs with on-line companies and aspect gigs, which girls usually tend to pursue than males, in keeping with a number of research.
During the last yr, I’ve traveled across the nation and met lots of of those feminine entrepreneurs and small-business house owners who’re making the most of the tax cuts to additional their financial goals. These embody Nicole Wolter, president of HM Manufacturing in Illinois, Dina Rubio, proprietor of Don Ramon Restaurant in Florida, and Susan Kochevar, proprietor of a drive-in movie show in Colorado. Not solely are these businesswomen thriving, however they’re additionally reinvesting their tax lower financial savings in new job alternatives and worker pay raises to make it simpler for younger ladies to comply with of their footsteps.
Feminine entrepreneurs of all stripes ought to benefit from right now’s tax cuts to pursue their entrepreneurial ardour. This might enable them to construct on the historic financial prosperity they’re already having fun with.