Tuesday, December 2, 2008

Paying less for shoes a possibility in 2009

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Shoe tariff still in effect after 78 years

Shoes come in all styles and sizes and also a hidden cost.

Tyler Herl is looking for the perfect fit. His daughter, Lindsey, can be a picky shopper.

But Herl has got the hang of it. He's been shoe shopping before.

"I'd say about every three months, they're kids, they grow," Herl said.

So, does the cost. Little does Herl know that it's because these shoes have a secret.

"I didn't know there was a shoe tax," he said.

It's actually a tariff, placed on imported shoes in the 1930's. IT protected U.S. shoemakers during the Great Depression.

But the tax has outlived its usefulness. Now, more than 90% of shoes are imported, but that cost is still passed down to consumers.

"Shopping for kids, it does get expensive, so that shoe tax would make a big difference," Herl said.

Depending on the shoe, 67% of the price can be because of the tariff. The shoes that are taxed at the highest rate are low-end shoes and children's shoes.

"If I buy expensive shoes for my son, he's the older one, then the little one wants the same. So, I have to make sure everyone can get the same shoes. Its hard for me this Christmas," shopper Miriam Vizcarra said.

Which is why some members of Congress are seeking to repeal the tariff on 60% of shoes that drives up prices.

Its called the Affordable Footwear Act and would offer relief to working families, an idea not only favorable down the aisles of Congress, but in between these shoe racks.

"That way we can buy more shoes for our kids," Vizcarra said.

"That would be a lot better for the economy," Herl said.

A $15 pair of shoes would cost only about $10 without the tariff.

Lawmakers will likely consider removing the tariff when a new Congress is sworn in in January.

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