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.
- Bill Number
- H.Res. 1340
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2026-06-04: 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.
- Last Updated
- 2026-07-06T12:29:37Z
AI-Generated Summary
Purpose of the Legislation This resolution expresses strong opposition to digital services taxes (DSTs) and similar measures imposed by other countries that target United States companies. It outlines concerns about discrimination in international taxation and urges continued U.S. efforts to address these issues through trade and diplomatic channels.
Key Provisions Outlined
- Defines a DST as a tax on companies providing digital services to users in a country, often based on revenue rather than profit and without requiring physical presence.
- Notes that several countries, including France, Italy, Spain, Turkey, Austria, and the United Kingdom, have implemented DSTs, while others like Poland and Belgium are considering them.
- References U.S. Trade Representative reports from 2019–2021 under Section 301 of the Trade Act of 1974, which identified five main issues with these taxes: discrimination against U.S. firms, retroactive application, taxation of gross revenue, taxation of revenue without in-country presence, and targeting of the digital sector.
- States that the U.S. and over 145 countries are engaged in OECD discussions on digital economy taxation, including global minimum taxes.
- Affirms U.S. commitment to principles of no double taxation, evidence-based rules, net taxation over gross taxation, and legal certainty.
The resolved section includes these main points:
- Commitment to free and fair trade.
- Agreement with USTR findings that DSTs discriminate against U.S. companies and conflict with international tax and trade agreements.
- Support for USTR Section 301 investigations initiated in 2020.
- Calls for other countries to stop implementing or repeal DSTs.
- Encouragement for continued OECD work on digital taxation.
- Direction to U.S. agencies to use available tools to protect U.S. companies.
- Support for tax and trade measures, including further Section 301 investigations.
Significant Changes to Existing Law Introduced This is a non-binding House resolution and does not amend any statutes or create new legal requirements. It reinforces existing U.S. trade policy tools, such as Section 301 investigations, without altering the underlying Trade Act of 1974 or international agreements.
Potential Impacts
- Government agencies: Supports expanded use of USTR investigations and other trade remedies, potentially leading to negotiations, duties, or dispute actions against countries with DSTs.
- Citizens and businesses: Aims to shield U.S. digital service providers and their customers (including small businesses) from additional tax burdens and double taxation.
- International relations: Promotes bilateral and multilateral engagement, including with the OECD, while signaling willingness to use trade tools if negotiations fail; it references past successes in prompting some countries to withdraw or forgo DSTs.
Main Stakeholders Affected
- U.S. digital services companies and their workers.
- The Office of the U.S. Trade Representative and congressional committees on Ways and Means and Foreign Affairs.
- Foreign governments that have enacted or proposed DSTs (e.g., France, Italy, Spain, Turkey, Austria, United Kingdom, Poland, Belgium).
- International organizations such as the OECD.
Notable Legal, Constitutional, or Political Implications The resolution highlights potential conflicts with existing international income tax principles that prioritize taxation based on permanent establishment rather than user location or gross revenue. It underscores political support for using established trade enforcement mechanisms to address perceived unfair foreign tax practices, without raising new constitutional questions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Rep. DelBene, Suzan K. [D-WA-1], Rep. LaHood, Darin [R-IL-16], Rep. Panetta, Jimmy [D-CA-19], Rep. Moran, Nathaniel [R-TX-1], Rep. Schneider, Bradley Scott [D-IL-10]
Recent Actions
- 2026-06-04: 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.
- 2026-06-04: 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.
- 2026-06-04: Submitted in House
Bill Versions
- 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. — issued 2026-06-04 — PDF (5 pages)