H.Res. 1340

[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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