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Some colleges have billion-dollar endowments — and now the GOP wants to tax them for it
Business Insider ^ | 11-3-2017 | Abby Jackson

Posted on 11/03/2017 4:37:52 AM PDT by Anti-Bubba182

House GOP leaders released sweeping tax legislation on Thursday.

Colleges and universities will pay a 1.4% excise tax on their endowment investment income if the "Tax Cuts and Jobs Act" is passed.

It's a big change from the current system, where college endowments are not taxed.........

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: endowments; tax
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To: kearnyirish2

Yeah, but wouldn’t the money being used from the endowment would ultimately mean that the university would need less money from Tuition to make ends meet?


21 posted on 11/03/2017 5:34:26 AM PDT by castlegreyskull
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To: Anti-Bubba182

There are easily more than a hundred colleges with billion-plus dollar endowments. All foundations should be taxed too.

I’d prefer they ALL lose tax exempt status for donations too.


22 posted on 11/03/2017 5:34:43 AM PDT by jjotto ("Ya could look it up!")
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To: Anti-Bubba182

It is long passed time that “the education industry” is to be taxed.

Collegiate endowments have been, in times passed, nothing more than tax write-offs, for those who could afford them.

I believe with the sensational diploma programs that give America so many “studies” graduates, that not only the endowments to be taxed, but for all those “studies” diploma, a flat sales tax, with the revenue from that tax to enable “studies” graduates an internship in McDonald’s restaurants.


23 posted on 11/03/2017 5:35:06 AM PDT by Terry L Smith
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To: Boardwalk

I think it is fair to say that I won’t be sending any of my children to Harvard with my own money.


24 posted on 11/03/2017 5:38:01 AM PDT by castlegreyskull
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To: kearnyirish2

I was commenting on the fact that you think that people who earn less money should be taxed at a lower rate.

Everybody should be taxed at the same rate. It’s called equal treatment under the law.

And universities should get no tax breaks whatsoever.


25 posted on 11/03/2017 5:38:49 AM PDT by E. Pluribus Unum (<img src="http://i.imgur.com/WukZwJP.gif" width=800>)
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To: Boardwalk

Hold on, Harvard went up. It is now 66,900 a year for tuition, room, and board and more for graduate students.


26 posted on 11/03/2017 5:39:35 AM PDT by Boardwalk
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To: Anti-Bubba182

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha

Yesssss...SOAK THE RICH.


27 posted on 11/03/2017 5:39:51 AM PDT by SoFloFreeper
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To: castlegreyskull

In theory it should, but often these funds are misused. When the financial crisis broke in 2007/2008, wealthy donors (or their descendants) checked on the impact on their endowments and often found the funds were being used for purposes completely outside the scope of the written intention. Schools actually had to return money to the donors (or those responsible for the donations many years later).


28 posted on 11/03/2017 5:41:00 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: harpu

I thought the first $24k was not taxed. Did I hear wrong?


29 posted on 11/03/2017 5:41:03 AM PDT by SoFloFreeper
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To: Anti-Bubba182

“Although the amount is trivial it is symbolic and the Universities are sure to scream.”

It’s not trivial if it’s yearly. 14% over 10 years...


30 posted on 11/03/2017 5:42:28 AM PDT by babygene (hMake America Great Again)
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To: E. Pluribus Unum

No, that was another poster’s position; I have no issue with a flat tax (given that the current system isn’t working).


31 posted on 11/03/2017 5:42:37 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: babygene

How will Harvard afford Liz Warren at $400,000 a year for teaching 1 class? Oh the huge manatee!


32 posted on 11/03/2017 5:47:21 AM PDT by Boardwalk
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To: kearnyirish2
So along with the political idiocy of raising the income tax rate (from 10% to 12%) on the first 28k that people earn
33 posted on 11/03/2017 5:47:55 AM PDT by E. Pluribus Unum (<img src="http://i.imgur.com/WukZwJP.gif" width=800>)
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To: Anti-Bubba182
A complete (sortable) list can be found on Wikipedia.
34 posted on 11/03/2017 5:49:08 AM PDT by oh8eleven (RVN '67-'68)
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To: babygene
It’s not trivial if it’s yearly. 14% over 10 years..

Only the investment income is taxed, and only 1.4% of that. The fund itself remains untouched. 98.6% of the growth is untouched.

Maybe the colleges will have a Tea Party.

35 posted on 11/03/2017 5:54:18 AM PDT by Teacher317 (We have now sunk to a depth at which restatement of the obvious is the first duty of intelligent men)
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To: castlegreyskull
If you assume a $250,000 cost for 4 years at Harvard (I may be under-stating it, an endowment worth 35 billion will put a lot of students through school.

I can't profess precisely how endowments work or how they're used, but they sound like giant slush funds, serving as tax deductions for those who put in, and a big pot of money for a relatively select few to "direct" to schemes "projects" they find redeemable. Sounds a little like a foundation. I wonder if they ever use them for political purposes?

36 posted on 11/03/2017 5:54:41 AM PDT by Lou L (Health "insurance" is NOT the same as health "care")
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To: Anti-Bubba182

Prefer to confiscate those endowments and use the funds to build the wall...


37 posted on 11/03/2017 5:56:00 AM PDT by kjam22 (America need forgiveness from God)
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To: E. Pluribus Unum

Please; can you look at who posted that before attributing it to me?


38 posted on 11/03/2017 5:56:35 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: Lou L

I like your sense of humor. These days, I doubt there is even one endowment that isn’t managed by some wildly-overpaid political crony or dedicated to Leftist causes.


39 posted on 11/03/2017 5:58:06 AM PDT by jjotto ("Ya could look it up!")
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To: Anti-Bubba182

How about congress eliminate all tax exempt organizations. All income is taxed. Liberal heads would explode.


40 posted on 11/03/2017 5:59:53 AM PDT by Gahanna Bob
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