letter from Yale

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This endowment tax is going to take a nice big bite at Washington and Lee, and Hillsdale, and Notre Dame and Trinity as well.

I thought the bill included an exemption for religious colleges, was this removed?

It has to do with the endowment per student I believe. Not religious affiliation.

It's just going to drive them to take more rich elite students because they won't have as much available for financial aid. Good job maga. Way to make things better for elite kids.

How can you claim there won't be any money for financial aid? The endowments are huge, and they aren't taxed on assets used for the tax exempt purpose. So use it! All that money is just sitting there paying fund managers while students are going into debt. Why? Other schools use the donated funds for the educational purposes, why can't these 30 schools do the same?

The other loopholes are to shrink enrollment to under 500 or open extension campuses out of the U.S. and get more than half of your students to enroll there. Then the excise tax section doesn't apply. Maybe all these schools opening global campuses actually were managing the assets well?

They do use it. It's ridiculous to say they don't, at Yale the endowment funds 1/3 of operating costs.

Then why are they worried about a tax?

Here's the language "... and, (D) the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $500,000 per student of the institution."

Colleges are taxed on assets they don't use for the tax exempt purpose.

You don't understand the language of the bill. An endowment is not "assets directly used to carry out the exempt purpose" even when the income of that endowment is used for educational purposes. The "directly used" language refers to things like classroom buildings, as the IRS explains here: https://www.irs.gov/pub/newsroom/1-excise-tax-on-net-investment-income-colleges-4968-13701_508.pdf&ved=2ahUKEwjUnf2yuriNAxXAEFkFHZtxNIcQFnoECH8QAQ&usg=AOvVaw3fJkzGXqhwRON5-grud-qf on page 9.

Yale will pay 21% on it's endowment income regardless of what it does with that income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This endowment tax is going to take a nice big bite at Washington and Lee, and Hillsdale, and Notre Dame and Trinity as well.

I thought the bill included an exemption for religious colleges, was this removed?

It has to do with the endowment per student I believe. Not religious affiliation.

It's just going to drive them to take more rich elite students because they won't have as much available for financial aid. Good job maga. Way to make things better for elite kids.

How can you claim there won't be any money for financial aid? The endowments are huge, and they aren't taxed on assets used for the tax exempt purpose. So use it! All that money is just sitting there paying fund managers while students are going into debt. Why? Other schools use the donated funds for the educational purposes, why can't these 30 schools do the same?

The other loopholes are to shrink enrollment to under 500 or open extension campuses out of the U.S. and get more than half of your students to enroll there. Then the excise tax section doesn't apply. Maybe all these schools opening global campuses actually were managing the assets well?

They do use it. It's ridiculous to say they don't, at Yale the endowment funds 1/3 of operating costs.

Then why are they worried about a tax?

Here's the language "... and, (D) the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $500,000 per student of the institution."

Colleges are taxed on assets they don't use for the tax exempt purpose.

You don't understand the language of the bill. An endowment is not "assets directly used to carry out the exempt purpose" even when the income of that endowment is used for educational purposes. The "directly used" language refers to things like classroom buildings, as the IRS explains here: https://www.irs.gov/pub/newsroom/1-excise-tax-on-net-investment-income-colleges-4968-13701_508.pdf&ved=2ahUKEwjUnf2yuriNAxXAEFkFHZtxNIcQFnoECH8QAQ&usg=AOvVaw3fJkzGXqhwRON5-grud-qf on page 9.

Yale will pay 21% on it's endowment income regardless of what it does with that income.

Your link is broken.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This endowment tax is going to take a nice big bite at Washington and Lee, and Hillsdale, and Notre Dame and Trinity as well.

I thought the bill included an exemption for religious colleges, was this removed?

It has to do with the endowment per student I believe. Not religious affiliation.

It's just going to drive them to take more rich elite students because they won't have as much available for financial aid. Good job maga. Way to make things better for elite kids.

How can you claim there won't be any money for financial aid? The endowments are huge, and they aren't taxed on assets used for the tax exempt purpose. So use it! All that money is just sitting there paying fund managers while students are going into debt. Why? Other schools use the donated funds for the educational purposes, why can't these 30 schools do the same?

The other loopholes are to shrink enrollment to under 500 or open extension campuses out of the U.S. and get more than half of your students to enroll there. Then the excise tax section doesn't apply. Maybe all these schools opening global campuses actually were managing the assets well?

They do use it. It's ridiculous to say they don't, at Yale the endowment funds 1/3 of operating costs.

Then why are they worried about a tax?

Here's the language "... and, (D) the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution's exempt purpose) is at least $500,000 per student of the institution."

Colleges are taxed on assets they don't use for the tax exempt purpose.

You don't understand the language of the bill. An endowment is not "assets directly used to carry out the exempt purpose" even when the income of that endowment is used for educational purposes. The "directly used" language refers to things like classroom buildings, as the IRS explains here: https://www.irs.gov/pub/newsroom/1-excise-tax-on-net-investment-income-colleges-4968-13701_508.pdf&ved=2ahUKEwjUnf2yuriNAxXAEFkFHZtxNIcQFnoECH8QAQ&usg=AOvVaw3fJkzGXqhwRON5-grud-qf on page 9.

Yale will pay 21% on it's endowment income regardless of what it does with that income.

Your link is broken.

Try this? https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.irs.gov/pub/newsroom/1-excise-tax-on-net-investment-income-colleges-4968-13701_508.pdf&ved=2ahUKEwiM5sH5vLiNAxV-NlkFHX99L4MQFnoECHQQAQ&usg=AOvVaw3fJkzGXqhwRON5-grud-qf

Sorry I'm not exactly sure the best way to link to a PDF.

[Anonymous]

Anonymous wrote:Vance must have hated being a hillbilly trying to pass there

Pull the ladder up being you JD! Make sure no other kid from Appalachia (or anywhere else) can get a scholarship!
God, he’s so self-hating.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yup. All true. Universities in the US are toast.
Signed, a prof who had hoped to help cure long COVID.

Ha! Funny. Maybe redirect your research to lab safety, specifically deficiencies found in overseas lab which heretofore received U.S. federal funding. I hear that's a booming business.

/s/ Taxpayer Mike

Research budgets are slashed so I won’t be doing anymore research. Seriously. A 40% decrease in NIh funding is going to put a major portion of our medical research out of jobs. A lot of what is left is politically managed now so universities won’t do it.
Overseas funding has totally ended though “Mike”. Stop trolling.

And yes, most universities are in massive trouble. State universities are in trouble from the federal budget shifting massive costs to states, and private universities with endowments now have taxes that force them to shrink to sizes where they cannot survive. And of course limiting loans will dry up the pool of enrollees.
Universities will be unrecognizable as a sector in a decade and not in a good way.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Vance must have hated being a hillbilly trying to pass there

Pull the ladder up being you JD! Make sure no other kid from Appalachia (or anywhere else) can get a scholarship!
God, he’s so self-hating.

+1

He is such a piece of s***!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Vance must have hated being a hillbilly trying to pass there

Pull the ladder up being you JD! Make sure no other kid from Appalachia (or anywhere else) can get a scholarship!
God, he’s so self-hating.

+1

He is such a piece of s***!

100% abusive yo his wife in private. Dysfunctional background

[Anonymous]

Anonymous wrote:

Anonymous wrote:To All Members of the Yale Community,

Earlier today, the U.S. House of Representatives passed legislation that proposes to raise the tax on the investment income of Yale and a number of other universities from 1.4% to 21%. Each year, this increased endowment tax would strip from Yale’s budget hundreds of millions of dollars that currently fund financial aid, research, scholarship, and teaching.

This legislation presents a greater threat to Yale than any other bill in memory. Today, I ask you to join me in defending the research that saves lives and keeps America competitive, the faculty who enrich minds and help us make sense of our complex world, and the students who keep our future bright. What is at stake is Yale’s ability to offer financial aid, to contribute to the vitality of our nation’s culture and civic life, and to introduce discoveries and innovations that transform the world.

Yale is fortunate to have a large endowment, which contributes one-third of the university’s total revenue, and nearly two-thirds of the revenue outside of the medical school. The endowment is the single largest source of revenue for Yale and is far greater than tuition. It enables Yale to provide, this year alone, $564 million in financial aid for students across all schools, $432 million for life-saving and groundbreaking research, and $415 million for faculty teaching and salaries in the arts, humanities, sciences, and social sciences. It enables Yale to be New Haven’s largest employer and an economic anchor that generates $8 billion annually for the state’s economy. You can learn more about Yale’s impact.

The endowment tax is not the only provision in the legislation affecting universities; other provisions would affect student aid, but the steep tax represents the greatest challenge for Yale and our community. If this tax increase is enacted, Yale’s ability to lead and innovate across all fields will be greatly reduced, and the scale of Yale’s impact on humanity will be diminished. The tax also threatens Yale’s longstanding commitment to affordability, which allows Yale to meet all admitted undergraduates’ full financial need without resorting to student loans. Around 85% graduate debt free. Yale College is currently tuition free in general to those with family incomes under $150,000 a year.

The coming few weeks are critical, as this bill will be debated and potentially amended in the Senate. If the Senate approves the bill with modifications from its current version, the Senate and House will need to reconcile any differences before the bill becomes law. We have a window to advocate for the importance of the research, scholarship, and teaching taking place at Yale and peer universities. I urge you to write and call your senators and urge them to reject an increase in the endowment tax, and I urge you to encourage others to do the same.

Please share the following important information with your representatives in the Senate and House:
The endowment tax places more financial burden on students by making college less affordable. Taxing schools reduces the revenue available for financial aid.
Schools manage endowments responsibly. Yale spends aggressively from its endowment to support financial aid and research. We spend a quarter of the endowment’s total value every five to six years.
The endowment tax will undermine the country’s global leadership in technology.
Universities perform fundamental research that has led to advancements that define modern life, including MRI, GPS, the internet, smartphones, and artificial intelligence, to name just a few.
University research will drive the next generation of innovation, such as quantum computing, that will be critically important to the economy and national security.
If the endowment tax increase is enacted, America’s great research universities will have less impact and become less able to educate the next generation of innovators, and the U.S. will cede leadership in new technologies to other countries.
I have been working, alongside scores of other university presidents, to share these messages with elected officials to remind them of the central role that Yale and peer universities play in building a highly capable workforce and making the discoveries that strengthen the nation’s economy, competitiveness, and security. I assure you that I will not stop working on this issue until it is settled.

Right now, each of us must make the case for what universities contribute and for what is at stake if we fall behind as a nation in education, research, and scholarship. Join me in sharing what Yale gave all of us and what Yale continues to give our country and the world.

Sincerely,

Maurie McInnis
President

Horeshit. The endowment does not pay for financial aid. The 50 percent full pay students paying nearly 100k per year do.

this is not true. the average undergrad costs yale 140k a year. even kids paying full fare dont cover their own expenses let alone pay for others

[Anonymous]

Anonymous wrote:Endowments are hedge funds. It’s about time.

You're probably right, so why are the hedge funds protected and educational institutions not?

[Anonymous]

It is fair that Yale pays its fair share. I think all progressive agree that the wealthy have to do their part.