United States of America: United States Senate Committee on Finance published text of Budget reconciliation Bill including measures to address digital services taxes considered discriminatory

On 16 June 2025, the United States Senate Committee on Finance published the text of the Budget reconciliation Bill, including measures to address digital services taxes considered discriminatory. The Bill introduced provisions addressing digital services taxes by defining "discriminatory tax" in Section 899(d)(4)(A). The term includes taxes imposed by foreign countries that apply disproportionately to nonresident individuals and foreign corporations, especially those targeting digital services or structured to exclude domestic taxpayers via revenue thresholds or scope restrictions. Generally applicable taxes such as income, value-added, or withholding taxes are excepted if they do not disproportionately affect United States persons. The provisions aim to enforce remedies, such as increasing tax rates or imposing additional levies, on entities linked to jurisdictions implementing such taxes, as outlined in Sections 899(a) and (e).