College Fix
Some universities will pay more under the “One Big Beautiful Bill” budget reconciliation law passed this summer and now in effect. The law expands a tax on university endowments first implemented under the 2017 Tax Cuts and Jobs Act.
“Colleges subject to the tax are required to pay a certain percentage of their endowment income to the government (not a percentage of the value of the endowment itself, a common misconception),” economist Preston Cooper told The College Fix via email. “This percentage ranges from 1.4% to 8% depending on the size of the endowment.”
“The endowment tax expansion will raise about $761 million over the coming decade, according to the Congressional Budget Office, which offsets part of the cost of the tax cuts in the bill,” Cooper, a senior fellow with the American Enterprise Institute, told The Fix. Other estimates have suggested four universities alone could pay $1 billion in the first five years and put projected revenue at more than $10 billion. The differences could be due to assumptions about market growth or decline, Cooper told The Fix. More
I’m so tired of looking at Elons face I’m out for the night. I’m wondering what the obsession IOTW advertisers have with Elon? Looks to me like traffics down drastically. Just sayen this plan sucks.
Does this mean they are going to tax college students who are well endowed?
Hadn’t realized that colleges were taxed in any way, shape, manner, or form due to their tax exempt status. As a taxpayer, who pays property tax biannually, I do begrudge their tax exempt status for the palatial grounds. And in the Soviet of Washington, their seeming exemption of the headcount taxes. And have to wonder about their status for utility fees and taxes while on the subject…