The U.S. Must Oppose Poland’s Proposed Digital Services Tax

On March 24, Poland’s Digital Affairs Minister and Deputy Prime Minister Krzysztof Gawkowski announced that the government would begin crafting a digital services tax (DST) bill. As of now, the proposal includes a 3% tax on services such as digital advertisement, marketplaces, and social media platforms provided to Polish users by companies operating within the country. The introduction of actual legislation comes after Gawkowski announced in August, 2025, his intention to target foreign––mainly American––tech companies.

Many countries in Europe, including Austria, Denmark, France, Hungary, Italy, Portugal, Spain, Switzerland, and the United Kingdom already levy DSTs, with several others having announced their intention to implement one in the future.

Now Polish progressives think it’s their country’s turn. Unlike the corporate income tax, which targets profits, DSTs tax gross revenue––in this case, companies with at least €1 billion or PLN 25 million per year in global revenue. This means that specifically American companies like Microsoft, Apple, Alphabet, and Amazon will be punished for providing digital services. Gawkowski and his party, The Left (Lewica), argue that this new tax will “level the playing field” by giving indigenous tech firms an edge.

The tax is little more than discrimination against American firms wrapped in progressive packaging. A report from the Tholos Foundation estimates that U.S. tech firms already pay nearly $3 billion annually due to DSTs around the world, and that this figure could double by 2030. If other countries join in this tax frenzy, American companies could face over $100 billion in cumulative DST costs. Over 60% of firms liable for DSTs in Spain and Turkey were American firms. Investigations by the United States Trade Representative found DSTs enacted across Europe to unfairly target American companies and restrict U.S. commerce.

DSTs are also constitutionally dubious. The legitimacy of taxation has traditionally lied in the reciprocal relationship between the state and the citizen, with the latter paying the state for protection and having a voice in the political process. However, DSTs fall on a handful of companies that lack legal protection that usually justifies taxation. Businesses whose entire infrastructure for generating value resides in the United States have no say in the political processes of a European nation. Yet these same countries feel they have a right to tax mere participation in the digital economy as if it were a territorial resource.

Nor does the economic burden of this taxation ultimately fall on the tech companies. When the UK implemented its 2% DST in 2020, Google, Amazon, and Apple all followed suit by raising advertising charges, marketplace fees, and app store commissions by 2%, respectively. While the tax is framed as targeting “Big Tech,” the real cost is passed onto domestic consumers. For the millions of Americans that use these platforms, this is backdoor taxation without representation.

The Left’s proposition is still months away from potential implementation. The Ministry of Digital Affairs is targeting Quarter Three 2026 for publication of the draft proposal, until which the bill will undergo internal government consultation. The bill will then move to the Sejm, Poland’s parliament, in Quarter Four. Subsequent passage of this tax would be convenient timing for the Left, which likely wants to maximize its legislative footprint before the May 2027 elections.

Fortunately, Prime Minister Donald Tusk also remains skeptical of the DST proposal but has not offered a unequivocal condemnation of the idea. This is where the U.S. must step in to protect its commercial interests. The U.S. must make clear that Poland, a country heavily reliant on American trade and military support, should not pounce on American businesses and taxpayers. Trump Administration has already signaled that it will not accept discriminatory practices against U.S. companies––something the Polish Left should remember.