Reply to Amount of Endowment Tax Liability Expected for 25 Elite US Universities

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[quote=Anonymous][quote=Anonymous][quote] The new law applies to private non-profit institutions of higher education that enroll at least 3,000 students—up from the previous threshold of 500 students. It sets new tax rates on net investment income at three different tiers. Endowments between $500,000 and $750,000 in assets per student will be taxed at the current rate of 1.4 percent. Endowments between $750,001 and $2 million per student will be taxed at a rate of four percent, while endowments above $2 million per student will be taxed at a rate of eight percent. This falls in between private foundations, which pay 1.39 percent, and corporations, which pay 21 percent.[/quote]
https://www.aei.org/education/how-much-will-universities-pay-in-endowment-tax/

The article goes on to show estimated taxes for 5 years. Let the accounting games begin. They will drive down the income figure and lobby to change this. [/quote]

Why are private foundations off the hook?  They apply for and get federal grant money.[/quote]

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