Crowley Bill Would End Shoe Tax, Saving Moms Billions

An outdated tax on shoes and sneakers, sometimes as high as 40 percent, would be eliminated under bipartisan legislation introduced by Congressmember Joseph Crowley and Texas Republican Kevin Brady. American shoe makers support it.

"Once enacted, this common-sense, uncontroversial reform of an outdated duty system will stop this unfair practice that costs American families up to $5 billion annually," Crowley (D- Queens/The Bronx) declared.

"American families, unbeknownst to them, are being forced to pay an unfair and steep tax passed along to them when purchasing shoes for their children," the Elmhurst lawmaker, a member of the powerful Way & Means Committee, said. "By eliminating this duty system, we are saving billions for American families who need to meet their obligations and live within fixed budgets."

Brady stated: "As parents of young children ourselves, we are calling on Congress to untie the shoe tax. Why should a mom pay 30 percent more for her child's shoes because of tariffs from half a century ago that are still on the books?"

Crowley explained that ending the tax is not controversial because it would not affect a protected industry. "High footwear duties originated in the 1930s to protect a manufacturing sector that no longer exists as it once did," Crowley said. "Over the last 20 years, U.S. footwear production has virtually disappeared except for the few footwear producers that have been successful in focusing on niche items that are distinguished by specialty and quality. Low-priced shoes, made primarily in China, Indonesia and Vietnam, are still subject to these outdated yet protective tariffs."

The Crowley/Brady Affordable Footwear Act would protect American shoe manufacturers while eliminating import duties- border taxes- on many types of footwear sold in the U.S., Crowley said. Currently, the United States applies a unique, regressive tax on footwear imports, meaning that it charges higher rates for lower-valued merchandise.

"Some of these rates range as high as 67.5 percent, translating into higher costs for retailers and consumers," Crowley said.

Last year alone, he noted, importers paid $1.9 billion in duties on footwear which, because of distribution markups, means families are paying an estimated $4 billion to $5 billion in unnecessary taxes.