Republican Tax Plan Would Tap Growing College Endowments
“1.4 percent tax on the investment income of private colleges and universities”
This is going to cause a huge outcry from the academic community. Too bad.
The New York Times reports:
Swelling College Endowments Tempt Lawmakers Looking for Tax Dollars
For years, lawmakers in Washington have made swelling university endowments a focus of the populist backlash against high tuition and the concentration of rich students in elite universities.
Now they are harnessing that anger with a proposed tax on private colleges and universities that have the wealthiest endowments.
The House Republican tax plan released on Thursday includes a 1.4 percent tax on the investment income of private colleges and universities with at least 500 students and assets of $100,000 or more per full-time student. It would not apply to public colleges.
The endowments are currently untaxed, as they are considered part of the nonprofit mission of the colleges. The new tax, if it passed, would bring in an estimated $3 billion from 2018 to 2027, one of many new revenue sources Congress is considering to pay for broad tax cuts.
Universities criticized the proposed tax Friday as a blunt instrument that would curb their autonomy and reduce support for poor and moderate-income students.
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“Universities criticized the proposed tax Friday as a blunt instrument that would curb their autonomy and reduce support for poor and moderate-income students.”
Are not the taxpayers already underwriting the poor, from veterans to rehabilitated substance abusers, and “dreamers” in some states.
They can pay millions to administrators, they can pay their fair share of taxes. 1.4% is way to low, considering the finished product in a lot of cases.
i recently watched Oliver Twist.
the endowments remind me of the fat cats telling Oliver ‘you want MORE ??!!!’
if people giving tax free money to schools really wanted to help students, rather thab seeing their name on buildings etc, they could pay the tuition, dorm, food expenses for ‘deserving’ students.
They’re going specifically after blue blood ivy league schools who suck indirectly at the government tit to get these conglomerates to help pay back their meals.
This is far from a blunt instrument and long overdue.
I like that idea but I want more. I want Universities to be the ones giving out student loans and not the govt. putting the taxpayer on the hook.
If a University thinks it is a good investment to put a student through 12 or more years of intersectionality, gender studies and community polarization studies then they should be happy to assume the loan risk.
Paul that comment wins the internet for today.