IV 
116TH CONGRESS 
2D SESSION 
H. RES. 1097 
Expressing strong opposition to the imposition of digital services taxes by 
other countries that discriminate against United States companies. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 1, 2020 
Mr. ESTES (for himself and Mr. KILDEE) submitted the following resolution; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Foreign Affairs, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
RESOLUTION 
Expressing strong opposition to the imposition of digital serv-
ices taxes by other countries that discriminate against 
United States companies. 
Whereas a digital services tax (DST) is a tax levied by a gov-
ernment on a company that provides a digital service to 
a person or company of that country; 
Whereas many companies that provide digital services are not 
physically located in the countries where the people that 
use the company’s services reside; 
Whereas, under current international income tax and trade 
agreements, multinational companies are subject to tax-
ation in the country where production of the good or 
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service occurs rather than in the country where the good 
or service is sold or used; 
Whereas certain countries have developed DSTs that deviate 
from this international income tax system that are dis-
criminatory to United States-based companies and 
threatens the success of United States companies and 
workers and their competitiveness in these international 
markets; 
Whereas many countries, including France and others, have 
already implemented a DST; 
Whereas the Organisation for Economic Co-operation and 
Development (OECD) has hosted multilateral negotia-
tions with 144 countries to propose a framework for up-
dating global tax rules and address the concerns of some 
countries about digital economy taxation on a multilat-
eral basis, and the United States is participating in these 
negotiations; 
Whereas the international tax treaty network promotes Amer-
ican prosperity by facilitating international trade and al-
lows United States businesses and consumers to avoid 
double taxation; 
Whereas, on July 24, 2019, France passed legislation that 
retroactively levied a DST beginning January 1, 2019; 
Whereas section 302(b)(1)(A) of the Trade Act of 1974 au-
thorizes the United States Trade Representative to ini-
tiate an investigation to determine whether an act, policy, 
or practice of a foreign country is actionable under sec-
tion 301 of the Trade Act of 1974; 
Whereas actionable matters under section 301 of the Trade 
Act of 1974 include, inter alia, acts, policies, and prac-
tices of a foreign country that are unreasonable or dis-
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criminatory and burden or restrict United States com-
merce; 
Whereas an act, policy, or practice is unreasonable if the act, 
policy, or practice, while not necessarily in violation of, 
or inconsistent with, the international legal rights of the 
United States, is otherwise unfair and inequitable; 
Whereas in response to France’s DST, the United States 
Trade Representative (USTR) published the ‘‘Report on 
France’s Digital Services Tax Prepared in the Investiga-
tion under Section 301 of the Trade Act of 1974’’ on De-
cember 2, 2019; 
Whereas the report made five main findings, including— 
(1) that ‘‘the evidence collected in this investigation 
indicates that the French DST is intended to, and by its 
structure and operation does, discriminate against U.S. 
digital companies’’; 
(2) that ‘‘the evidence collected in this investigation 
indicates that the French DST’s retroactive application is 
unusual and inconsistent with prevailing tax principles 
and renders the tax particularly burdensome for covered 
U.S. companies, which will also affect their customers, 
including U.S. small businesses and consumers’’; 
(3) that ‘‘the evidence collected in this investigation 
indicates that the French DST’s application to gross rev-
enue rather than income contravenes prevailing tax prin-
ciples and imposes significant additional burdens on cov-
ered U.S. companies’’; 
(4) that ‘‘the evidence collected in this investigation 
indicates that the French DST’s application to revenues 
unconnected to a presence in France contravenes pre-
vailing international tax principles and is particularly 
burdensome for covered U.S. companies’’; and 
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(5) that ‘‘the evidence collected in this investigation 
indicates that the French DST’s application to a small 
group of digital companies contravenes international tax 
principles counseling against targeting the digital econ-
omy for special, unfavorable tax treatment’’; 
Whereas, in light of concerns with the DSTs adopted or 
under consideration by foreign countries, on June 2, 
2020, the United States Trade Representative initiated 
section 301 investigations with respect to DSTs adopted 
or under consideration by Austria, Brazil, the Czech Re-
public, the European Union, India, Indonesia, Italy, 
Spain, Turkey, and the United Kingdom; 
Whereas, pursuant to section 303(a) of the Trade Act of 
1974, the United States Trade Representative has re-
quested consultations with the governments of these ju-
risdictions; and 
Whereas the United States Government has many options to 
oppose DSTs, including intensive 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: 
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 report issued 
by the United States Trade Representative on De-
cember 2, 2019, that concludes that the French dig-
ital services tax (DST) discriminates against United 
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