Expressing strong opposition to the imposition of digital services taxes and other relevant similar measures by other countries that unfairly discriminate against United States companies.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 1340 Introduced in House (IH)]

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119th CONGRESS
  2d Session
H. RES. 1340

  Expressing strong opposition to the imposition of digital services
   taxes and other relevant similar measures by other countries that
         unfairly discriminate against United States companies.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2026

   Mr. Estes (for himself, Ms. DelBene, Mr. LaHood, Mr. Panetta, Mr.
Moran, and Mr. Schneider) submitted the following resolution; which was
  referred to the Committee on Ways and Means, and in addition to the
     Committee on Foreign Affairs, for a period to be subsequently
   determined by the Speaker, in each case for consideration of such
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                               RESOLUTION

  Expressing strong opposition to the imposition of digital services
   taxes and other relevant similar measures by other countries that
         unfairly discriminate against United States companies.

Whereas a digital services tax (DST) or a relevant similar measure is a tax
        levied by a government on a company that provides a digital service to a
        person or company of that country;
Whereas several countries have also proposed or implemented other measures that
        similarly discriminate against United States digital services providers
        that are novel and extraterritorial taxes like DSTs and pose significant
        challenges to United States companies;
Whereas many companies that provide digital services are not physically located
        in the countries where the people that use the company's services reside
        and generate revenue from a global enterprise;
Whereas, under current international income tax and trade agreements, the
        country where multinational companies have a permanent establishment are
        granted the primary right to tax the income rather than the country
        where their products are sold or used;
Whereas the scope of DSTs are based on revenues unconnected to in-country
        presence and applied to gross revenue rather than income;
Whereas certain countries have implemented DSTs that deviate from this
        international income tax system that are discriminatory to United
        States-based companies and threaten the success and competitiveness of
        United States companies and workers in these international markets;
Whereas many countries, including France, Italy, Spain, Turkiye, Austria, and
        the United Kingdom, have already implemented a DST, and other countries,
        including Poland and Belgium, are actively considering enacting their
        own DSTs;
Whereas the United States and more than 145 countries are continuing to engage
        in constructive dialogue related to the tax challenges of the digital
        economy, including global minimum taxes;
Whereas, from 2019 to 2021, in response to the DSTs of France, Italy, Turkiye,
        Austria, Spain, and the United Kingdom, the United States Trade
        Representative published reports prepared in investigations under
        Section 301 of the Trade Act of 1974 (Section 301);
Whereas the reports made 5 main findings, including--

    (1) these DSTs are intended to, and by their structure and operation
do, discriminate against United States digital companies;

    (2) these DSTs' retroactive application is unusual and inconsistent
with prevailing tax principles and renders the taxes particularly
burdensome for covered United States companies, which will also affect
their customers, including United States small businesses and consumers;

    (3) these DSTs' application to gross revenue rather than income
contravenes prevailing tax principles and imposes significant additional
burdens on covered United States companies;

    (4) these DSTs' application to revenues unconnected to a presence in-
country contravenes prevailing international tax principles and is
particularly burdensome for covered United States companies; and

    (5) these DSTs' application to a small group of digital companies
contravenes international tax principles counseling against targeting the
digital economy for special, unfavorable tax treatment;

Whereas the United States Government has many options to combat DSTs, including
        bilateral engagement, withdrawal of trade preference programs, World
        Trade Organization dispute settlement, or imposing duties, fees, import
        restrictions, or taxes on the goods or services of countries that
        unfairly target United States companies;
Whereas the United States Trade Representative's use of Section 301
        investigations on digital services taxes has proven to be useful tools
        in compelling foreign jurisdictions to negotiate fair, profit-based tax
        treatment;
Whereas sustained United States trade engagement has already led to certain
        trading partners agreeing to withdraw or repeal existing DSTs or
        formally commit to not impose DSTs in the future;
Whereas the United States will continue bilateral and multilateral engagement on
        DSTs, based on the principles of no double taxation, evidence-based
        taxation, net taxation over gross taxation, and legal certainty; and
Whereas, even with ongoing negotiations, several jurisdictions continue to
        maintain or consider DSTs that specifically target the gross revenues of
        United States-based companies, creating a persistent environment of
        double taxation and market distortion: Now, therefore, be it
    Resolved, That the House of Representatives--
            (1) is committed to free and fair trade between the United
        States and other countries;
            (2) agrees with the findings of the reports issued by the
        United States Trade Representative that found DSTs discriminate
        against United States companies and violate existing
        international income tax and trade agreements;
            (3) supports the Office of the United States Trade
        Representative for initiating on June 5, 2020, investigations
        into discriminatory DSTs;
            (4) calls on all other countries to cease and desist from
        implementing any DST or similar measures, to repeal existing
        DSTs, and to immediately stop unfairly targeting United States
        companies;
            (5) calls on all countries to continue to work toward
        consensus with the Organisation for Economic Co-operation and
        Development (OECD) to address the tax challenges of a global,
        digitalized economy based on the first principles of no double
        taxation, evidence-based taxation, net taxation over gross
        taxation, and legal certainty;
            (6) calls on the relevant United States Government agencies
        to use all appropriate and available methods and resources to
        protect United States companies from the discriminatory
        treatment and burdensome effects of DSTs; and
            (7) supports of the of appropriate tax and trade tools,
        including section 301 investigations into the implementation or
        proposal of digital service taxes by any nation.
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