EU digital services taxes are de facto tariffs, US Republicans say

In an April 3 letter to President Donald Trump, 15 Republicans on the House Ways and Means Committee have charged that proposals by France and other EU countries for a digital services taxes target US multinationals and amount to an effort to grab tax revenue that rightly belongs to the US.

The lawmakers say that France’s digital services tax, with its high revenue threshold and narrow definition of services subject to tax ensures that US companies will be the main taxpayers.

The tax operates like a “de facto” tariff, the House Ways and Means Republicans said in their letter, urging the US to “engage forcefully on these issues” and treat the taxes as a trade barrier.

 

 

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