Bipartisan House Resolution Targets Foreign Digital Taxes Costing U.S. Firms $3 Billion Annually

Americans for Tax Reform applauded the introduction of H.Res. 1340, a bipartisan resolution opposing foreign Digital Services Taxes that the group says unfairly target American companies. Rep. Ron Estes (KS-04) introduced the measure on June 5, 2026, with co-leadership from Rep. Suzan DelBene (WA-01) and co-sponsorship from Representatives LaHood, Panetta, Moran, and Schneider. The resolution pushes back against what ATR characterizes as discriminatory taxation by foreign governments against U.S. digital firms.

According to a report published by ATR and the Tholos Foundation, U.S. firms currently pay nearly $3 billion annually in digital services taxes. That figure is expected to nearly double by 2030, and could potentially reach $9.6 billion under a scenario where more countries adopt these taxes. Countries including France, Italy, Spain, Turkey, Austria, and the United Kingdom have already implemented DSTs, while Poland and Belgium are actively considering them.

Grover Norquist, President of Americans for Tax Reform, stated that "Digital Services Taxes are not legitimate tax policy. They are protectionist schemes designed to pick the pockets of Americans." The resolution describes DSTs as extraterritorial tax measures that single out American companies for punishment. Unlike traditional income taxes, these taxes target a company's gross revenue rather than its net income and apply regardless of whether that company has any physical presence in the taxing country. The Office of the U.S. Trade Representative has previously investigated DSTs under Section 301 of the Trade Act of 1974 and concluded they are explicitly discriminatory against U.S. digital companies, unusually burdensome due to retroactive application, and in violation of prevailing international tax and trade agreements.

The resolution serves as what ATR calls a clear legislative signal that Congress won't stand by while American companies face double taxation and market distortion from abroad. The damage extends beyond major tech firms, with U.S. small businesses and consumers bearing costs as well. H.Res. 1340 represents a bipartisan effort to protect American companies and workers from what the sponsors view as discriminatory foreign taxation. Norquist urged Congress to "use every tool available to fight back against this discriminatory overreach," framing the issue as one of basic fairness and economic self-defense rather than partisan politics.