ATR Praises Bipartisan Push Against Foreign Digital Services Taxes

Americans for Tax Reform applauds Rep. Ron Estes (KS-04) for introducing H.Res. 1340, a bipartisan resolution pushing back against foreign Digital Services Taxes that unfairly target American companies and workers.

Grover Norquist, President of Americans for Tax Reform, issued the following statement praising the introduction of the resolution:

“Rep. Ron Estes and his colleagues are standing up for American workers and businesses against a coordinated effort by foreign governments to shake down U.S. companies. Digital Services Taxes are not legitimate tax policy. They are protectionist schemes designed to pick the pockets of Americans. Congress is right to put the world on notice that the United States will use every tool available to fight back against this discriminatory overreach. We urge all members to support this resolution.”

The resolution, co-led by Rep. Suzan DelBene (WA-01) and co-sponsored by Reps. LaHood (IL-16), Panetta (CA-19), Moran (TX-01), and Schneider (IL-10), expresses strong opposition to DSTs and other extraterritorial tax measures that single out American companies for punishment.

Unlike traditional income taxes, DSTs target a company’s gross revenue rather than its net income — and apply regardless of whether that company has any physical presence in the taxing country. Countries including France, Italy, Spain, Turkey, Austria, and the United Kingdom have already implemented these taxes, while Poland and Belgium are actively considering them.

A report published by ATR and the Tholos Foundation found that U.S. firms currently pay nearly $3 billion annually in digital services taxes — a figure expected to nearly double by 2030, and potentially reaching $9.6 billion under a scenario where more countries pile on.

The Office of the U.S. Trade Representative (USTR) has previously investigated DSTs under Section 301 of the Trade Act of 1974 and concluded they are explicitly discriminatory against U.S. digital companies, unusually burdensome due to retroactive application, and in violation of prevailing international tax and trade agreements.

H.Res. 1340 serves as a clear legislative signal that Congress will not stand by while American companies are subjected to double taxation and market distortion from abroad. The damage from these taxes extends well beyond major tech firms — U.S. small businesses and consumers bear the costs too.

The resolution’s bipartisan nature underscores that protecting American companies and workers from discriminatory foreign taxation is not a partisan issue. It is a matter of basic fairness and economic self-defense.

The full text of the resolution is available on here.