Americans for Tax Reform supports the recent letter by Rep. Suzan DelBene and Rep. Darin LaHood encouraging the Biden Administration to counter unilateral digital regulations proposed by the European Union. The U.S. government must continue to protect American workers and consumers against discriminatory practices abroad.
“As you prepare for meetings with your European counterparts this month, we urge you to work with the E.U. to ensure non-discriminatory treatment for firms on both sides of the Atlantic,” wrote DelBene and LaHood, Co-Chairs of the Digital Trade Caucus, in their letter to President Biden on Wednesday.
DelBene and LaHood specifically named their primary concern to be the Digital Markets Act and Digital Services Act introduced in the European Union, which would “regulate large technology firms and hit them with hefty fines for noncompliance.” They noted that these pieces of legislation disproportionately target American companies and would have disastrous consequences for 19 million American workers employed by these businesses.
The members of Congress urged the Biden Administration to raise these concerns with the EU before the legislation is finalized and instead work toward an international solution that establishes fairer rules and prevents discriminatory targeting of digital companies in one or more countries.
ATR shares the concerns expressed in the letter and encourages the Biden Administration to continue pushing back against discriminatory digital policies in the European Union and other countries. Besides the Digital Markets Act and Digital Services Act, a number of countries have also established or proposed discriminatory Digital Services Taxes (DSTs), which harm American workers as well.
The Biden Administration must ensure that American jobs and businesses are allowed to thrive on a fair international playing field.