Wyden-backed gross receipts tax proposal for data centers draws broad criticism, with opponents saying it would function as a nationwide internet tax

Senate Finance Committee Chair Ron Wyden, a Democrat, has proposed a tax framework aimed at data centers, according to Fox News, drawing immediate backlash from critics who said the approach could operate like a nationwide internet tax paid by nearly everyone.

In Fox News’s account, the proposal would use a gross receipts tax structure targeting data centers, an approach the critics characterized as a broad-based charge rather than a narrow tax on specific corporate profits. Supporters argue it targets a particular sector, while opponents say the tax’s design risks pushing costs throughout the economy through prices and fees tied to internet-connected services.

The reaction described in the report centers on the scope critics say could reach consumers and businesses far beyond the data center industry. Fox News reported warnings that “nearly every American could pay,” tying the anticipated cost concerns to the widespread use of data center services for day-to-day communications, online commerce, and other internet-dependent activity.

Critics’ central contention, as reflected in Fox News, is that the tax mechanism would not remain confined to data center operators. Instead, they said the tax would be passed through, ultimately affecting households and smaller enterprises that rely on connectivity and digital services rather than directly managing data center infrastructure.

The proposal also raises administrative and policy questions that often follow tax changes, including how gross receipts would be calculated for covered entities, what enforcement tools would be used, and whether the tax would interact with existing federal and state tax structures for internet-related industries.

At this stage, the report describes the political dispute and the competing claims about who ultimately pays, without establishing enacted law or a final statutory text. Further developments would typically depend on whether the Senate leadership pursues legislation, how the measure is drafted, and what committees and outside stakeholders argue about its scope and compliance burdens.

Because the Fox News report focuses on reaction to the concept, the next step for determining practical impact would be the publication of legislative language and an official scoring or explanation of how the policy would work in practice, including who falls under the definition of affected data centers and how costs would be expected to be borne.