Thursday, November 9, 2017
Following up on Friday's post, List Of 140 Colleges With Endowments Greater Than $100,000 Per Student That Would Be Subject To GOP's Proposed 1.4% Tax On Investment Income: Washington Post, House GOP Trims Total of Colleges Targeted For New Endowment Tax:
House Republicans have slashed the number of colleges they are targeting for a new tax on endowment income.
The GOP majority on the Ways and Means Committee voted Monday night to modify a tax bill that includes several provisions affecting higher education. Among them is a proposal that makes college presidents blanch: an excise tax on endowment income for certain private colleges.
Under the first version of the bill, made public last week, private colleges would have been subject to a 1.4 percent tax on net investment income if they had 500 or more students and an endowment of at least $100,000 per full-time student. A Chronicle of Higher Education analysis found that about 140 schools would have been affected. The American Council on Education estimated the number affected as 155.
Now the total of targeted schools has been cut by more than half.
The amendment from Ways and Means Chairman Kevin Brady (R-Tex.), approved on a party-line vote, would raise the wealth threshold for colleges subject to the tax to an endowment of $250,000 or more per full-time student. That would leave roughly 60 to 70 schools potentially subject to the tax, from Ivy League universities such as Princeton and Harvard to smaller schools such as Oberlin College and College of the Ozarks.