U.S. Reps. Ron Estes (R-KS) and Dan Kildee (D-MI) have introduced a resolution that condemns foreign digital services taxes (DSTs).
These taxes, imposed by foreign countries like France, Canada, and Colombia, unfairly target U.S. digital firms, the lawmakers said, citing investigations by the U.S. Trade Representative. The U.S. Trade Representative, speaking before the House Ways and Means Committee recently, found that several countries’ DSTs unfairly discriminated against U.S. companies and were inconsistent with international tax principles.
House Resolution 268 expresses “strong opposition to the imposition of digital services taxes by other countries that discriminate against United States companies.”
The resolution was referred to both the House Ways and Means and Foreign Affairs committees.
“There is bipartisan concern over digital services taxes that hinder American innovation and punish American consumers,” Estes said. “Foreign countries have unfortunately sought to establish them to shore up their own fiscal issues while targeting American organizations, but U.S. companies shouldn’t be the backstop for foreign fiscal failures. This resolution I’m introducing with Rep. Kildee makes a strong statement that the United States will defend American workers, businesses, and innovation against countries that wish to plunder from our economy.”
Estes wrote an op-ed about France’s DSTs in 2019. He also responded to French Minister of the Economy and Finance Bruno Le Maire’s Wall Street Journal op-ed with a letter to the editor in 2020.
“We cannot allow foreign countries to target American companies with unfair tax penalties. That goes against the free and fair-trade principles the United States and our allies strive to abide by,” Kildee said. “I am proud to again introduce this legislation with Representative Estes to support American businesses who are being discriminated against across the globe and call for an end to these practices.”