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News 8

Your Health Matters
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Putting an end to the hidden shoe tax

02:53 PM CST on Thursday, December 27, 2007

By CHRIS HAWES / WFAA-TV

WFAA-TV


WFAA-TV
The tax on this $20 pair of shoes is around $4.

FORT WORTH — Wouldn't you just love to pay less for shoes?

For decades, we've all been paying a hidden shoe tax. Critics say it's a regressive levy that's only hurting low- and middle-income families.

Now Congress is considering legislation that would eliminate the tax on low- to moderately-priced footwear, including children's shoes—the footwear that families on the tightest budgets have to buy.

The tax got its start during the Great Depression. The government charged extra for companies that brought foreign-made shoes into the U.S. The idea at the time was to help American shoe manufacturers.

Today, few shoes are still made in this country, but the tax remains.

The tax accounts for more than $4 of the selling price for a $20 pair of shoes.

Amy Rush says a change of just a few dollars often makes her shoe-buying decision. "Goodwill has good ones," she said. "You can go there and get them really cheap, like $4. So, I'm splurging today... Christmas money!"

Those tax savings would also add up favorably for Heather Hunt. "That would be a lot better," she said. "A lot more shoes!"

Legislation to end the shoe tax has big backers, including more than 50 co-sponsors.

"There is intense competition in the footwear industry," explained Nate Herman, a spokesman for the American Apparel and Footwear Association. "When you have players like Wal-Mart and Kmart in the industry, you basically have to pass on the savings to the consumer."

Delilah Riley, grandmother to six pairs of growing feet, hopes that Herman is right. "I think we need to do anything to help the consumer," she said.

The legislation, for the most part, applies to shoes with rubber soles and canvas uppers. Supporters want to see the legislation pass as part of a bigger trade bill this spring.

E-mail chawes@wfaa.com