ISSUE: Depression-era shoe tax

OUR VIEW: Tariff hurts those trying hardest to feed, clothe families

Did you know that among the highest-taxed items you can buy are low-priced shoes? A Depression-era tariff on such imports has been allowed to stand, driving up the price of one of the necessities for those who can least afford the higher prices.

An organization known as the Affordable Footwear Initiative Coalition is calling on Congress to provide relief to consumers during this period of slumping retail sales by repealing the tax on shoes, which in some cases can run as high as 67.5 percent a pair. Estimates have it that up to 30 percent of the price of shoes can be attributed to the tax.

It's ironic the tariffs remain in these free-trade years that have been disastrous for some industry and business. In the case of shoes, retaining the tax has not saved American jobs. U.S. makers stopped making so-called low-end shoes years ago. Estimates are that 99 percent of shoes sold in this country are imported.

Repealing the shoe tax would have a positive impact on the economy by boosting consumer spending. The New York Times reported ("Retailers Report a Sales Collapse," Nov. 6, 2008), "[c]onsumer spending represents two-thirds of the nation's economic activity … [c]onsumers are cutting their spending for many reasons … even people who still have jobs are pinching pennies…"

Two think tanks that rarely agree - The Progressive Policy Institute and the Heritage Foundation - concur that repealing the shoe tax is a good idea. In a joint report, they said, "By eliminating tariffs on footwear produced abroad, the Affordable Footwear Act would have an immediate and meaningful impact on household budgets …. As the cheapest shoes face the highest tariffs, the effective tax cut would be highest for the poorest families."

Importantly, the change is supported by both footwear manufacturers and retailers, and organizations representing them. Coalition members include the American Apparel & Footwear Association, Footwear Distributors and Retailers of America, Retail Industry Leaders Association, Outdoor Industry Association and the National Retail Federation.

It is a change that can help working families at a time when the American consumer can use all the help he or she can get. Because the tax targets less-expensive, budget footwear, it's not hard to see who is hit the hardest.

So many have complained loudly about the rich getting the most breaks in the present-day U.S. tax code (and in general). This is one instance in which the shoe literally can be on the other foot by making it easier for poor parents to feed and clothe their children while at the same time boosting the U.S. shoe industry.

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