US Seeks to Extend Digital-Tax Freeze as Global Deal Stalls (2)

The Biden administration is proposing to allies that they extend a coordinated freeze on new digital services taxes beyond its planned expiration at the end of this year, in a bid to avert a trade war among friends and keep alive a foundering global tax deal.

The freeze was included in the October 2021 global tax agreement, brokered by the Organization for Economic Cooperation and Development and supported by more than 130 countries. But that deal has not yet been implemented, in part because the US Congress has refused to endorse it.

The administration is seeking the extension because it ...