REFNATION
EconomyEnded 26 Jul

Should the UK scrap its digital services tax to avoid US tariffs?

Yes 40%No 60%143 votes cast

The US has imposed 10-12.5% tariffs on imports from the UK and 59 other countries over forced labour concerns. The EU has secured a more favourable trade deal. The US has also threatened further tariffs on UK and European imports if digital services taxes are introduced, while the UK plans a 2% levy on big tech firms' revenue.

Jump to opinions· 3

The most striking thing about this vote is how thin the argument for scrapping the levy actually was: only 57 of 143 backed capitulation to Washington's threats, and not one of them left a word to explain why. On a question that hinges on a live trade dispute, the yes side simply went quiet, leaving the floor's only sympathetic case to come, oddly, from a no voter who half-conceded the tax's logic while doubting the whole premise of the standoff.

The no camp, by contrast, argued with some conviction, and the chamber's most-respected line kept it simple: "Keep saying it equalise tax so same for everyone." A second no voter pushed further into principle, insisting "if you earn money in this country you should be taxed on it, regardless of where you are based," and dismissed the tariff threat itself as noise that "will blow in the wind what ever we do." Between the two sides there was barely a debate at all — one asserted fairness and sovereignty over tax base, the other never showed up to answer it.

That asymmetry echoes a familiar British instinct since 2016: reluctance to let external pressure, whether from Brussels or Washington, dictate domestic tax policy, even when the economic cost of standing firm is real and the EU has already struck the softer deal. Big tech's revenues, and who gets to tax them, remain a fault line the UK seems minded to hold rather than trade away.

For a policy squarely in the crosshairs of a superpower's tariffs, the case for holding firm barely had to be made to win by two to one.

LeftCentreRight
40%
Yes · 57 votes
60%
No · 86 votes
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Debate

3 Opinions

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rjane· 279
The Public Power Architect
Voted noLeft

If you earn money in this country you should be taxed on, regardless of where you are based. You cant pull money out of an economy and not expect to pay tax. Trump and his tariffs will blow in the wind what ever we do.

The Atlantic Gatekeeper
Voted yesRight

Yes, but not because of lefty "eat the rich" ideas. Because every industry, no matter how intangible, needs to contribute. How else will we afford the data centres Big Tech needs?

Glasses· 461
The Public-Order Traditionalist
Voted noRight

Keep saying it equalise tax so same for everyone.