FDRA sends out new call on affordable footwear
19/01/2012
The AFA would repeal a tax on imported footwear that has been in place in the US since the 1930s. It affects more than 40% of footwear imports to the US, including many athletic and outdoor shoes. Originally put in place to help protect domestic manufacturers, the FDRA has said the tax is "outdated and regressive", because more than 90% of shoes sold in US stores now come from outside the country.
FDRA president, Matt Priest, said in the letter: “Today, 99% of the shoes sold in the US come from overseas. This new legislation would save American shoppers over $2 billion as inflationary costs are rising across the globe and the tax is based on the price of the shoes. Ironically, these tariff rates are higher on lower-cost shoes, highly affecting lower-income families.”
Duties vary depending on what the shoe is made of and can be as high as 67.5% and have a dramatic impact on the consumer price of a pair of shoes. But if the Affordable Footwear Act has a successful passage through congress, the FDRA estimates that a resulting shortfall in tax of $800 million a year would be compensated for by extra shoe sales of around $2 billion.
"We expect the bulk of the tax benefit would be passed on to consumers through lower prices, ultimately helping to increase consumer-spending power," Mr Priest said. “Shoes are a life necessity and this hidden, regressive tax presents an additional burden on hardworking families at a time when they can least afford it.”
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