House Tax Writers Say Digital Services Taxes Risk US Retaliation

Countries should abandon digital services taxes and pursue a multilateral approach to the digital economy or risk US-led trade or tax retaliation, according to a bipartisan House resolution introduced Thursday.

The measure, from Reps. Ron Estes (R-Kan.) and Suzan DelBene (D-Wash.), expresses opposition to digital services taxes and similar measures that lawmakers say unfairly target US companies. Bloomberg Tax obtained a copy of the resolution before its release.

Several countries have adopted digital services taxes to collect revenue from online commerce conducted within their borders by multinational companies based elsewhere. US officials have long argued the levies disproportionately affect American ...