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On July 16th Americans for Tax Reform organized a coalition of 16 organizations in a letter thanking President Trump for his stance against Canada’s Digital Services Tax.
The coalition also reiterated the importance of addressing the taxation of American tech companies by the European Union. The European Union has overtaxed American tech companies for decades and over the last few weeks European officials have repeatedly stated their unwillingness to address these practices in trade talks with the U.S.
Europe’s overregulation has crushed their own ability to innovate and compete. Rather than allow their own people to flourish, the European Commission and member states continue to impose their own dour and pessimistic legal frameworks to weaken American technology companies and prop up their own through subsidies. Of course, rather than resulting in a thriving tech sector in Europe, this approach simply cedes ground to Chinese tech giants that are eagerly awaiting to seize market share from U.S. companies.
European overregulation has stagnated their tech industry while China only grows. Rather than correct regulatory flaws and revive European industry, the E.U. simply drains American companies. This can and must be corrected through President Trump’s tariff negotiations.
This is a critical moment to ensure a U.S.-EU trade deal explicitly addresses the extortionate and discriminatory practices in the DMA (Digital Markets Act) and prevents similar practices in future laws. History has shown that without a strong U.S. government response, the EU will not stop targeting American innovators.
This coalition believes that this relationship must change for American tech companies to compete in the global market and hopes President Trump’s negotiations result in a fair and balanced deal with the European Union.
Read the full letter here.
