Washington, D.C. - Congressmen Joseph Crowley (D-NY) and Kevin Brady (R-TX) today unveiled the bipartisan Affordable Footwear Initiative (AFI), legislation that would eliminate an outdated tax on shoes and sneakers paid by American families and consumers.  They were joined by American footwear leaders calling for the elimination of this outdated tariff system, which has resulted in consumers being charged up to 40% over the market value of footwear worn mostly by children. 

“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,” said Congressman Crowley, a member of the Ways & Means Committee. “Once enacted, this common-sense, uncontroversial reform of an outdated duty system will stop this unfair practice that costs families up to $5 billion annually.  By eliminating this outdated duty system, we are saving billions for American families who need to meet their obligations and live within fixed budgets.  I am proud to work with Congressman Kevin Brady in introducing this initiative that promises tax relief for Americans.”

“As parents of young children ourselves we are calling on Congress to untie the shoe tax”, said Brady, a member of the Ways & Means Committee. “Why should a mom pay 30% more for her child’s shoes because of tariffs from half a century ago that are still on the books? Parents have a hard enough time stretching their paycheck.”  

The Affordable Footwear Act would protect American shoe manufacturers while eliminating import duties - border taxes - on many types of footwear sold into the U.S.   Currently, the United States applies a unique regressive tax to footwear imports, meaning that it charges higher rates for lower-valued merchandise.   Some of these rates range as high as 67.5%, translating into higher costs for retailers and consumers.   Last year alone, importers paid $1.9 billion in duties on footwear, which, because of distribution mark-ups, means families are paying an estimated $4 to $5 billion in unnecessary taxes. 

This reform 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.  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 Affordable Footwear Initiative does not include the few footwear products made in the United States, so domestic manufacturers do not oppose this bill.