Impacts of Canada’s Proposed Digital Service Tax on the United States

Canadian Bill C-59 would impose a digital services tax (DST) of 3% on revenues from online marketplaces, online advertising, social media, and user data services. The DST would disproportionately harm U.S. businesses, costing U.S. businesses between $0.9 billion and $2.3 billion annually. This would not only reduce export revenues and income for U.S. businesses and their shareholders, but would also shrink the U.S. tax base, and lead between 1,207 and 3,140 American workers to lose their jobs.