Friday, December 30, 2011

My modest proposal to help low income people save 10% today on a necessity for their children...This policy is DOABLE! Why do Dems and Reps hate poor people?

Now that the Spiderman and the X-Men, along with their trade lawyers, have defeated (sort of) tariffs on their action figures (see previous post HERE) they can turn their attention to helping poor/low income people.

Tariffs (taxes) on imported shoes are VERY regressive--the lower the price of the shoe the higher the tariff.

""Footwear tariffs are simply a hidden, regressive tax on a household necessity. Their sole effect is to reduce the amount of income families have to spend on all other goods and services. This expense is most onerous for low-income families with children who spend the largest share of their income on the necessities of life..."

""The consequences for families—especially those with low incomes—are dramatic. Tariffs inflate the cost of the cheapest shoes by about a third. A $2.28 pair of sneakers arriving at the border is assessed a 48 percent excise tax, adding $1.09 to the price, which is passed along to shoppers...." (Source: Cut Shoe Tariffs to Help Low-Income Families)

Asume that the $2.28 shoes retails at a store for $10.00, the tariff represents about 10% of the total price of the shoe.

Tariffs, in general (not exclusively, though), are imposed to protect domestic producers from less expensive foreign competition.  But there are NO domestic producers of inexpensive (ok, cheap) shoes to protect anymore. 

So, WHY are these tariffs left in place by Congress?  Want to do something EASY that will benefit low income/poor people?  Repeal these tariffs!!

How many OTHER tariffs are imposed on basic goods that low income people purchase everyday and are NOT produced in the US anymore, so NO domestic production jobs are threatened?

How about it, Wolverine/Spidey or.... CONGRESS...Are y'all up to banishing these anti-poor policies?
Note: Read he two page summary of the research cited above  HERE.

Also, listen to a short NPR podcast on this topic:

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