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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This endowment tax is going to take a nice big bite at Washington and Lee, and Hillsdale, and Notre Dame and Trinity as well.[/quote]

I thought the bill included an exemption for religious colleges, was this removed?[/quote]

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.[/quote]

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?[/quote]

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

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.[/quote]

You don't understand the language of the bill. An endowment is not "assets [i] directly[/i] 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.[/quote]

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