Reps. Estes, Kildee Introduce Resolution Condemning Foreign Digital Services Taxes (DSTs)

WASHINGTON – Today Reps. Ron Estes (R-Kansas) and Dan Kildee (D-Michigan) introduced a resolution in the House of Representatives condemning foreign Digital Services Taxes (DSTs). These taxes, such as those introduced by France, Canada and Colombia, unfairly target U.S. digital firms and hamper American ingenuity.

The resolution follows U.S. Trade Ambassador Katherine Tai's appearance at a Ways and Means hearing last week. Previously, the U.S. Trade Representative investigations found several countries' DSTs unfairly discriminated against U.S. companies and noted their inconsistencies with international tax principles.

"There is bipartisan concern over Digital Services Taxes that hinder American innovation and punish American consumers," said Rep. Estes. "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."

"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," said Rep. Kildee. "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."

Rep. Estes wrote an op-ed about France's DSTs in 2019 and 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. On Thursday, Rep. Estes questioned Ambassador Tai about DSTs during the Ways and Means hearing.

View the full text of the resolution here.

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