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Lawmakers want to give shoe tax the boot

06:09 PM PST on Monday, November 17, 2008

KING5.com Staff

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SEATTLE – If you think you’re paying too much for shoes, it may be due to a tax that has been in place since the 1930’s. Now, some members of Congress, including two senators from the Northwest, are co-sponsoring a bill to have it thrown out.

The tax was actually a tariff on imported shoes imposed during the Great Depression. The idea was to tax foreign-made shoes so that American-made shoes would be less expensive, thus encouraging consumers to buy American.

But these days, because more than 90 percent of shoes sold in America are imports, most shoppers are stuck paying that foreign tax.

Depending on the shoe, up to 67 percent of the price can be because of the tariff. It’s estimated that for a $15 pair of shoes, as much as $4.50 of that is due to the shoe tax.

Low-end shoes and children’s shoes are among those that are taxed at the highest rate.

Congress is now considering the Affordable Footwear Act to repeal the tax. Sen. Gordon Smith, R-Ore., is sponsoring the bill. Sen. Maria Cantwell, D-Wash. is listed as a co-sponsor. The House of Representatives also has its version of the bill with several Northwest lawmakers listed as co-sponsors.

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