Page 140 - BWA FEB 2013

140 | Business World Magazine | February 2013
footwear is taxed at 48 percent, others can be
taxed as high as 68 percent.
Policies are a byproduct of The Tar-
iff Act of 1930, also known as the Smoot-
Hawley Tariff, which was signed into law
June 17, 1930, with sponsorship by Sena-
tor Reed Smoot and Representative Willis
Hawley. This legislation raised U.S. tariffs
on more than 20,000 goods imported to
America. At the time, the intent was to pro-
vide greater security to American manufac-
turers, but again, since shoe manufacturing
has by and large moved overseas in deference
to that measure, Priest says adherence to the
policy not only defies logic, but also unfairly
leaves “American consumers left holding the
bill for an initiative that has long outlived its
purpose.”
To further demonstrate the illogi-
cal inequity in the way tariffs are applied,
Priest offers an example that involves vari-
able rates. For instance, consider the basic
canvas-clothed shoe with a rubber sole (a
line that would otherwise be seen at the low-
er end of costs such as might be purchased
at Walmart). The duty rate applied to these
very inexpensive shoes can be as much as 48
percent, while that of a higher quality, leather
loafer, would have rates less than 10 percent.
Thus, lower income consumers are hit with