Whoa Canada! New Digital Service Taxes Go After American Jobs

WASHINGTON, D.C. – After Canada’s Parliament gave final approval to a new tax on digital services that would be retroactive to January 1, 2022, Ways and Means Chairman Jason Smith (MO-08) issued the following statement:

“America will not stand by quietly while Canada embraces discriminatory taxes on Americans that undermine the U.S. economy and our historic trade partnership. Even worse, these taxes are retroactive, going back over two years. This is a step in the wrong direction and deserves a swift response. Congress has provided U.S. Trade Representative Tai with tools intended to deal with problems just like this, which include the USMCA dispute process and a rapid Section 301 investigation that builds on the work the Trump Administration already did to uncover the ways multiple DSTs around the world discriminate against the United States or otherwise constitute unreasonable acts that burden U.S. commerce. I urge the Biden Administration to use those tools.”