,,iv #aaf? ,,congress #b;d ,session ,h4 ,,res4 #ajig ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,septemb] #a1 #bjbj ,mr4 ,e/es 7= himself & ,mr4 ,kildee7 submitt$ ! foll[+ resolution2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committee on ,=eign ,affairs1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,,resolution ,express+ /rong opposition to ! imposition ( digital s]vices taxes by o!r c\ntries t discrim9ate aga9/ ,unit$ ,/ates companies4 ,:]eas a digital s]vices tax 7,,d/7 is a tax levi$ by a gov]nm5t on a company t provides a digital s]vice to a p]son or company ( t c\ntry2 ,:]eas _m companies t provide digital s]vices are n physically locat$ 9 ! c\ntries :]e ! p t use ! company's s]vices reside2 ,:]eas1 "u curr5t int]national income tax & trade agreem5ts1 mult9ational companies are subject to taxation 9 ! c\ntry :]e production ( ! good or s]vice occurs r ?an 9 ! c\ntry :]e ! good or s]vice is sold or us$2 ,:]eas c]ta9 c\ntries h develop$ ,d,s,ts t deviate f ?is int]national income tax sy/em t are discrim9atory to ,unit$ ,/ates-bas$ companies & ?reat5s ! success ( ,unit$ ,/ates companies & work]s & _! competitiv5ess 9 ^! int]national m>kets2 ,:]eas _m c\ntries1 includ+ ,france & o!rs1 h already implem5t$ a ,,d/2 ,:]eas ! ,organisation = ,economic ,co-op]ation & ,developm5t 7,,oecd7 has ho/$ multilat]al negotiations ) #add c\ntries to propose a framework = updat+ global tax rules & address ! conc]ns ( "s c\ntries ab\t digital economy taxation on a multilat]al basis1 & ! ,unit$ ,/ates is p>ticipat+ 9 ^! negotiations2 ,:]eas ! int]national tax treaty network promotes ,am]ican prosp]ity by facilitat+ int]national trade & all[s ,unit$ ,/ates bus9esses & consum]s to avoid d\ble taxation2 ,:]eas1 on ,july #bd1 #bjai1 ,france pass$ legislation t retroactively levi$ a ,,d/ beg9n+ ,janu>y #a1 #bjai2 ,:]eas section #cjb7;b77#a77;,a7 ( ! ,trade ,act ( #aigd au?orizes ! ,unit$ ,/ates ,trade ,repres5tative to initiate an inve/igation to det]m9e :e!r an act1 policy1 or practice ( a =eign c\ntry is actionable "u section #cja ( ! ,trade ,act ( #aigd2 ,:]eas actionable matt]s "u section #cja ( ! ,trade ,act ( #aigd include1 int] alia1 acts1 policies1 & practices ( a =eign c\ntry t are unreasonable or discrim9atory & burd5 or re/rict ,unit$ ,/ates comm]ce2 ,:]eas an act1 policy1 or practice is unreasonable if ! act1 policy1 or practice1 :ile n necess>ily 9 violation (1 or inconsi/5t )1 ! int]national legal rights ( ! ,unit$ ,/ates1 is o!rwise unfair & inequitable2 ,:]eas 9 response to ,france's ,,d/1 ! ,unit$ ,/ates ,trade ,repres5tative 7,,u/r7 publi%$ ! ,report on ,france's ,digital ,s]vices ,tax ,prep>$ 9 ! ,inve/igation "u ,section #cja ( ! ,trade ,act ( #aigd on ,decemb] #b1 #bjai2 ,:]eas ! report made five ma9 f9d+s1 includ+-- 7#a7 t ! evid5ce collect$ 9 ?is inve/igation indicates t ! ,fr5* ,,d/ is int5d$ to1 & by its /ructure & op]ation does1 discrim9ate aga9/ ,u4,s4 digital companies2 7#b7 t ! evid5ce collect$ 9 ?is inve/igation indicates t ! ,fr5* ,,d/'s retroactive application is unusual & inconsi/5t ) prevail+ tax pr9ciples & r5d]s ! tax p>ticul>ly burd5some = cov]$ ,u4,s4 companies1 :i* w also affect _! cu/om]s1 includ+ ,u4,s4 small bus9esses & consum]s2 7#c7 t ! evid5ce collect$ 9 ?is inve/igation indicates t ! ,fr5* ,,d/'s application to gross rev5ue r ?an income contrav5es prevail+ tax pr9ciples & imposes significant additional burd5s on cov]$ ,u4,s4 companies2 7#d7 t ! evid5ce collect$ 9 ?is inve/igation indicates t ! ,fr5* ,,d/'s application to rev5ues unconnect$ to a pres5ce 9 ,france contrav5es prevail+ int]national tax pr9ciples & is p>ticul>ly burd5some = cov]$ ,u4,s4 companies2 & 7#e7 t ! evid5ce collect$ 9 ?is inve/igation indicates t ! ,fr5* ,,d/'s application to a small gr\p ( digital companies contrav5es int]national tax pr9ciples c\nsel+ aga9/ t>get+ ! digital economy = special1 unfavorable tax treatm5t2 ,:]eas1 9 light ( conc]ns ) ! ,d,s,ts adopt$ or "u consid]ation by =eign c\ntries1 on ,june #b1 #bjbj1 ! ,unit$ ,/ates ,trade ,repres5tative initiat$ section #cja inve/igations ) respect to ,d,s,ts adopt$ or "u consid]ation by ,au/ria1 ,brazil1 ! ,cze* ,republic1 ! ,european ,union1 ,india1 ,indonesia1 ,italy1 ,spa91 ,turkey1 & ! ,unit$ ,k+dom2 ,:]eas1 pursuant to section #cjc7;a7 ( ! ,trade ,act ( #aigd1 ! ,unit$ ,/ates ,trade ,repres5tative has reque/$ consultations ) ! gov]nm5ts ( ^! jurisdictions2 & ,:]eas ! ,unit$ ,/ates ,gov]nm5t has _m options to oppose ,d,s,ts1 includ+ int5sive bilat]al engagem5t1 )drawal ( trade pref]5ce programs1 ,_w ,trade ,organization dispute settlem5t1 or impos+ duties1 fees1 import re/rictions1 or taxes on ! goods or s]vices ( c\ntries t unfairly t>get ,unit$ ,/ates companies3 ,n[1 !re=e1 be x ,t ! ,h\se ( ,repres5tatives-- 7#a7 is committ$ to free & fair trade betwe5 ! ,unit$ ,/ates & o!r c\ntries2 7#b7 agrees ) ! f9d+s ( ! report issu$ by ! ,unit$ ,/ates ,trade ,repres5tative on ,decemb] #b1 #bjai1 t concludes t ! ,fr5* digital s]vices tax 7,,d/7 discrim9ates aga9/ ,unit$ ,/ates companies & is 9 violation ( exi/+ int]national income tax & trade agreem5ts2 7#c7 supports ! ,(fice ( ! ,unit$ ,/ates ,trade ,repres5tative = cont9u+ its inve/igations into discrim9atory ,d,s,ts ?r\gh its notice ( inve/igations issu$ on ,june #b1 #bjbj2 7#d7 calls on all o!r c\ntries to cease & desi/ f implem5t+ any ,,d/1 & to imm$iately /op unfairly t>get+ ,unit$ ,/ates companies2 7#e7 calls on all c\ntries to cont9ue to "w t[>ds cons5sus ) ! ,organisation = ,economic ,co-op]ation & ,developm5t 7,,oecd7 to address ! tax *all5ges ( a global1 digitaliz$ economy2 & 7#f7 calls on ! relevant ,unit$ ,/ates ,gov]nm5t ag5cies to use all available me?ods & res\rces to protect ,unit$ ,/ates companies f ! discrim9atory effects ( ,d,s,ts4