College Endowment Tax Hike

[Anonymous]

Anonymous wrote:It looks like the tax for colleges with large endowments will be increased from 1.4% to 20%. While this may be a popular policy idea among the general public, I'm concerned that the actual outcome will be bad for college students that need financial aid. If Harvard is taxed at a rate of 20% of net investment income, they would owe around a billion dollars in endowment taxes each year (40k per student). The entire financial aid budget for Harvard is only around 800 million, so this tax would effectively eliminate Harvard's ability to offer financial assistance to low-income students.
https://www.politico.com/live-updates/2025/05/09/congress/republicans-eye-massive-expansion-of-college-endowment-tax-00339060

ADVOCATE:
for Students and Campuses in the 2025 Budget Reconciliation Bill
https://www.acenet.edu/Policy-Advocacy/Pages/2025-Reconciliation-Toolkit.aspx

[Anonymous]

Anonymous wrote:Looks like they are just looking to make sure these wealthy institutions pay their fair share.

This is definitely an issue that progressives and conservatives agree on.

They do? I guess conservatives just don’t care about wealthy individuals paying their fair share?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Looks like they are just looking to make sure these wealthy institutions pay their fair share.

This is definitely an issue that progressives and conservatives agree on.

They do? I guess conservatives just don’t care about wealthy individuals paying their fair share?

Gotta give credit where credit’s due. The GOP/Trump are absolute geniuses when it comes to manipulating their base into believing that a massive transfer of wealth from the have-nots to the haves is fair, and that it somehow benefits the average MAGA voter. It’s actually genius. The fact that people vote against their own interests and then double down to justify it? That’s a masterclass in deception.