Section 301 Investigation Launched over France's Digital Services Tax
The Office of the U.S. Trade Representative will begin a Section 301 investigation of France's proposed digital services tax, which is expected to pass the French Senate tomorrow, the USTR said in a news release. "The structure of the proposed new tax as well as statements by officials suggest that France is unfairly targeting the tax at certain U.S.-based technology companies," the release said. A Federal Register notice will follow with instructions on how to comment on or testify in front of the investigation.
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Republicans and Democrats in leadership positions in tax-writing committees in the U.S. Congress praised the investigation's launch. Senate Finance Committee Chairman Chuck Grassley and Ranking Member Ron Wyden issued a joint release that said, "The United States would not need to pursue this path if other countries would abandon these unilateral actions and focus their energies on the multilateral process that is underway at the Organization for Economic Cooperation and Development."