Shoe industry presses Congress to drop shoe tax |
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| Monday, 27 October 2008 | |
 With the words “You have bailed out Wall street, now help Main street”, nearly 50 companies representing over 160 well-known footwear brands and retailers urged Congress to pass the Affordable Footwear Act. The act would end the shoe tax on lower to moderately-priced footwear
and all children's shoes. Concerned about the slowing economy and the credit crunch that is sharply curtailing consumer spending, the footwear industry sent a letter last week asking for the Act to be included in a larger economic stimulus package Congress is expected to consider in a November lame duck session. The Affordable Footwear Act eliminates a hidden but costly import tariff that can add as much as 30 percent or more to the retail price of a pair of shoes. Established at the start of the Great Depression, the shoe tax was meant to protect domestic manufacturers from cheaper imports. But it still remains, even though 99 percent of all shoes sold in America are imported.
Image: Foot Wear |
In its letter, the footwear industry and its retailers said: "The Affordable Footwear Act is the perfect opportunity to provide a real, tangible tax cut that would immediately stimulate the economy and provide a benefit to main street Americans." Companies who have put their names to the letter include Puma, Reebok, Adidas, Asics, Timberland,Clarks, Columbia, Nike, NineWest, Rockport, Wal-Mart Stores, New Balance, and Wolverin. The American Apparel & Footwear Association was formed in August 2000 through the merger of two highly regarded trade associations: the American Apparel and Manufacturers Association and Footwear Industries of America. Drawing from a broad, strong membership base, AAFA is the national trade association representing apparel, footwear, and other sewn products companies, which compete in the global marketplace. 