Reply to LACs will avoid endowment tax

Forum Index » College and University Discussion

Reply to "LACs will avoid endowment tax"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]They also dropped the part that excluded international students from the calculation and lowered the rates to 1.4% between $500-750k per student, 4% between $750k-$2 million per student, and 8% over $2 million. A big nothing-burger for most institutions in the end.[/quote]

Wow, people made such a big deal out of nothing. Life goes on.[/quote]

For the schools subject to the tax, it’s a huge deal.  This is a tax of several *billion* dollars for most of them. [/quote]

No, it is not. An 8% tax on investment income (because it is not on the whole endowment, but on investment income only) is a billion dollars for exactly zero institutions. For Harvard it is maybe a bit over $300 million and it goes down quickly from there for other institutions. And that’s on an endowment over $50 billion and before they take steps to reduce their realized investment income. There are only four other institutions above the size threshold and in the 8% bracket. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics