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Reply to "How Princeton is Getting Around the Endowment Tax"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Seems like a win for everyone! [/quote] Seems like it makes the endowment tax arbitrary stupid nonsense. Don't tax Princeton but tax MIT. Don't text Amherst or NYU but tax Notre Dame. This whole thing just seems pointless.[/quote] It is a Pigovian tax. It wasn’t intended to raise revenue. This is an optimal outcome, perhaps even an intended one. [/quote] It’s kind of crappy to be a family who makes just a tad over the line (or who have more than typical assets) who will pay full price while others just a tiny bit under the line pay none. I get the rationale but it’s not optimal from that perspective. [/quote]
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