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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