A new analysis published by the CCIA Research Center reveals that Canadian Bill C-59, which proposes a digital services tax of 3% on various online activities, could have significant financial implications for U.S. businesses. The study suggests that this tax could lead to annual costs ranging from $0.9 billion to $2.3 billion for U.S. businesses, potentially resulting in job losses affecting between 1,207 and 3,140 American workers.
The bill, currently in the final stages of review by Canada’s Parliament, specifically targets sectors where U.S. businesses hold a prominent position, potentially impacting ICT-enabled services exports to Canada. CCIA Chief Economist & Research Center Director Trevor Wagener highlighted the potential consequences, stating, "Canada’s proposed digital services tax is designed to disproportionately target U.S. businesses, while sparing many similar services supplied by Canadian firms."
Wagener further emphasized the negative outcomes, stating, "The Canadian proposed digital services tax is a classic example of a foreign government proposing to discriminate against U.S. employers and exports." He also raised concerns about the U.S. Trade Representative's role in safeguarding American interests, warning that failure to act could set a dangerous precedent for global trade practices.
The Computer & Communications Industry Association, with a longstanding commitment to advocating for policies that promote competition, innovation, and consumer welfare, is actively engaged in addressing the potential ramifications of Bill C-59 on U.S. businesses.
