WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement after President Trump signed an executive order to combat foreign countries imposing discriminatory taxes, like a digital service tax (DST), or other unfair digital trade policies on U.S. innovators and workers:
“From the very beginning President Trump has seen these digital service taxes for the threat they are: Attacks on U.S. innovators that undermine our economy and hurt our workers. That’s why he fought back during his first term when many economies, including India, Turkey, France, and other European nations, sought to impose discriminatory taxes that target American innovators in the first place.
“The Biden Administration chose weakness: Democrats abandoned long-held U.S. positions insisting on high-standard digital trade rules and unilaterally disarmed and suspended the Section 301 investigations President Trump had initiated to hold trading partners accountable for unfair DSTs. Worse, they hijacked the OECD negotiations to surrender our tax base to Europe and provide China with an unfair advantage. So far they have refused to sign on to legislation led by Ways and Means Republicans that would apply reciprocal taxes on businesses from foreign countries that impose extraterritorial and discriminatory taxes against American businesses, including DSTs.
“Fortunately, the American people brought back to the White House a President who will stand up for American businesses and workers. With the Trump Administration and congressional Republicans in the majority, America comes first.”
READ: Smith: Canada’s New Discriminatory Taxes on Americans Deserve Swift Response