If the shoe fits

September 9th, 2008 at 04:32pm Wally Haas

I’ve never heard of these folks. I thought I’d post their news release and see what your reaction is.

 Wall Street Journal Calls on Congress to Eliminate the Shoe Tax

The Affordable Footwear Initiative Coalition commends an editorial from this weekend’s Wall Street Journal to you.  At issue is a regressive footwear tariff that protects no U.S. industry and artificially drives up the price of shoes, particularly on lower-priced footwear, thus penalizing lower and middle income families the most.

A bipartisan group in the U.S. Senate and House, led by Senators Maria Cantwell (D-WA) and Gordon Smith (R-OR) and Congressmen Joe Crowley (D-NY) and Kevin Brady (R-TX) seek to repeal much of the tariff with their legislation, The Affordable Footwear Act (S. 2372 and H.R. 3834).

The Affordable Footwear Act (AFA) was carefully crafted to eliminate the most regressive footwear tariffs; it will maintain duties on imported footwear that competes with the small amount of footwear still manufactured in the United States.  The legislation would eliminate about $600 million in duties – saving consumers nearly $2 billion.

Follow this link to the Wall Street Journal editorial, “Shot in the Foot.”

The Affordable Footwear Initiative is a coalition dedicated to eliminating the hidden, regressive and high import tariffs on lower- to moderately-priced footwear and children’s shoes.  Coalition members include the American Apparel & Footwear Association (AAFA), Footwear Distributors and Retailers of America (FDRA), Retail Industry Leaders Association (RILA), Outdoor Industry Association (OLA), National Retail Federation (NRF), and many of the individual member companies represented by these associations.

For more information call 101 Strategy Partners – Michael Klein at (202) 742-4439 or John Feehery (202) 742-4493

Footwear Distributors and Retailers of America – Peter Mangione at (202) 737-5660

American Apparel & Footwear Association – Dawn Van Dyke at (703) 797-9056

or visit www.endtheshoetax.org

 September 5, 2008

Affordable Footwear Initiative Coalition

Shoe Tax Hurts Working Families

When Congress reconvenes next week it will take up many important issues – not the least of which is helping American families in this time of economic uncertainty.  Eliminating the footwear tariff should be at the top of the list.

In the 1930s, the United State Congress enacted high tariffs meant to protect domestic manufacturing industries.  History has shown this to have been a terrible mistake and most of those tariffs have been scrapped.  One of the remaining tariffs is a huge tax on imported shoes – in some cases as high as 67.5 percent!

Ninety-nine percent of shoes sold in the U.S. are imported, so the footwear tariff does not protect U.S. jobs.  Yet, this tariff impacts virtually every American household.  Because of the way the tariff was designed, the lower the value of the shoe, the higher the tax.  Relief is especially needed by lower and middle income consumers and families, who pay a disproportionately higher percentage of their income for this consumer necessity.

The Footwear Tariff-at-a-Glance

• Enacted in the 1930s, the tariff now serves no purpose other than to needlessly drive up the price of shoes.  Domestic footwear production is small and comprises niche markets – less than 2 percent of the total footwear market.  The Affordable Footwear Act, (H.R. 3934/S. 2372), would not eliminate or reduce tariffs on products still manufactured in the United States. 

• Ironically, the tariff adds much more to the cost of lower-value, budget footwear, and relatively little to the cost of high-end, expensive shoes.  The people who can least afford it – working class families, single mothers, and students – are hit hardest.

• The tariff can be as high as 67.5 percent for some shoes, and in a typical $15 pair of children’s shoes – up to $4.50 of the price could be the result of the tariff.

• The Affordable Footwear Act introduced in the U.S. House by Representatives Joe Crowley (D-NY), Kevin Brady (R-TX), and Nancy Boyda (D-KS) and by Senators Maria Cantwell (D-WA) and Gordon Smith (R-OR) in the U.S. Senate, would eliminate much of the footwear tariff, saving America’s families literally millions of dollars each year.

• This non-controversial, bipartisan bill enjoys the support of conservatives and liberals alike, with 156 co-sponsors in the House and 14 in the Senate. 

• The bill permanently eliminates much of the current footwear tariffs, primarily those imposed on low-priced footwear (typically under $20 at retail) and children’s products.

• As National Public Radio’s Adam Davidson pointed out in a story last year, “Nobody set out to tax the poor more than the rich.  It happened by accident.”¹   But it has happened, and Congress should fix the problem now.

The Affordable Footwear Initiative is a coalition dedicated to eliminating the hidden, regressive and high import tariffs on lower- to moderately-priced footwear and children’s shoes.  Coalition members include the American Apparel & Footwear Association (AAFA), Footwear Distributors and Retailers of America (FDRA), Retail Industry Leaders Association (RILA), Outdoor Industry Association (OIA), National Retail Federation (NRF) and many of the individual member companies represented by these associations. 

For more information call 101 Strategy Partners - Michael Klein at (202) 742-4485 or John Feehery (202) 742-4493

Footwear Distributors and Retailers of America – Peter Mangione at (202) 737-5660

American Apparel & Footwear Association Dawn Van Dyke at (703) 797-9056

¹“U.S. Tariffs On Shoes Favor Well-Heeled Buyers” All Things Considered, June 12, 2007

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