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The GOP Tax Bill Will Hurt U.S. Universities (taxes endowments)
politico.com ^ | 12/1/17 | Douglas A. Warner

Posted on 12/01/2017 2:53:23 PM PST by cotton1706

It seems odd that a tax bill purporting to boost economic growth would take resources away from the institutions most vital to promoting it. But that’s just what the Tax Cut and Jobs Act, which has passed the House and is heading to a vote in the Senate, does.

The legislation takes the unprecedented step of taxing the income of certain private universities—specifically, it imposes a 1.4 percent tax on net endowment income for universities with endowments larger than $250,000 per full-time student. Some commenters have applauded the tax, as if it would rectify everything they consider amiss with higher education in America. But few of those supporters have examined the measure’s dire consequences—repercussions that would frustrate everything from access to college in America to the top-notch university research that creates U.S. jobs.

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


TOPICS: Government; Politics
KEYWORDS: educationfunding; elections; highereducation; trumptaxcuts
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Surely the universities should pay their fair share!

Surely the universities would want to live up to their "from each according to his ability, to each according to his need" philosophy!

Apparently not. 1.4% of THEIR money must not go to the government!!

1 posted on 12/01/2017 2:53:23 PM PST by cotton1706
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To: cotton1706

Winning


2 posted on 12/01/2017 2:54:37 PM PST by Fai Mao (I still want to see The PIAPS in prison)
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To: cotton1706

US Universities, aka: Institutions of Marxist Indoctrination.


3 posted on 12/01/2017 2:55:03 PM PST by Signalman
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To: cotton1706

Oh boo hoo.


4 posted on 12/01/2017 2:55:22 PM PST by FreeReign
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To: cotton1706

Good. Liberals love taxes. This should have them in ecstasy.


5 posted on 12/01/2017 2:59:17 PM PST by Fantasywriter (Any attempt to do forensic work using Inernet artifacts is fraught with pitfalls. JoeProbono)
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To: cotton1706

Writer seems to be applying for job as Drama Queen...


6 posted on 12/01/2017 2:59:29 PM PST by greatvikingone
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To: cotton1706

The next step is for the Fed to get out of the student loan business. Let the universities provide the loans and actually stand behind their worthless degrees. Colleges will think twice about extending $150k loans of their own money to philosophy majors who will spend their careers as coffee baristas.


7 posted on 12/01/2017 2:59:42 PM PST by trublu
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To: cotton1706

But but but but its ONLY 1.4% don’t you want to pay your fair share? It will NEVER go up right? Ha ha ha ha. I’m a recovering college professor who was shown the door for being a conservative in a “conservative” school. I LOVE THIS!!


8 posted on 12/01/2017 3:02:33 PM PST by jmaroneps37 (Conservatism is truth. Liberalism is lies.)
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To: trublu

New headline:

The GOP Tax Bill Will Hurt Leftist Indoctrination Centers

There, fixed it ... and this is coming from an old newsman who wrote his share of headers before they kicked him out of the biz for being conservative.


9 posted on 12/01/2017 3:03:10 PM PST by Nothingburger
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To: Nothingburger

President Trump appease tax loving liberal Universities by Taxing them.


10 posted on 12/01/2017 3:10:03 PM PST by jennychase
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To: cotton1706
it imposes a 1.4 percent tax on net endowment income for universities with endowments larger than $250,000 per full-time student

So it is not even on all endowments, it is only on the wealthiest 1%. What's not to like about that?

They can even reduce their tax burden by (a)enrolling more full-time students and/or (b)making more endowment money available for scholarships.

Who thought up this genius plan?

11 posted on 12/01/2017 3:10:56 PM PST by Vigilanteman (ObaMao: Fake America, Fake Messiah, Fake Black man. How many fakes can you fit into one Zer0?)
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To: cotton1706

OutSTANDING, Mr. President.


12 posted on 12/01/2017 3:11:04 PM PST by sparklite2 (I hereby designate the ongoing kerfuffle Diddle-Gate.)
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To: trublu

Universities should back up the governments student loan obligations. When their graduates fail to pay back their student loans the universities should make up the debt. Not the government.


13 posted on 12/01/2017 3:11:24 PM PST by poinq
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To: jennychase
Next step is to apply a surtax all those in Hollywood making more than, say, 20 times the median income of a member of the Screen Actors Guild.

Since most members of SAG make only around $6,000 per year from acting gigs, it would surtax incomes only above $120K. Didn't their hero ObaMao say he wanted to spread the wealth. Let's see how that works in Hollywood, then expand it to Broadway, journalism and the rest of the entertainment industry.

14 posted on 12/01/2017 3:15:07 PM PST by Vigilanteman (ObaMao: Fake America, Fake Messiah, Fake Black man. How many fakes can you fit into one Zer0?)
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To: cotton1706

Hell. These institutes of Communist Indoctrination don’t need any help in hurting themselves.

So, let’s do what we can to help them along toward shuttering their doors.


15 posted on 12/01/2017 3:15:58 PM PST by Howie66 ("Tone down the tagline please." - Admin Moderator)
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To: cotton1706

Harvard’s endowment is over 40 billion and growing.


16 posted on 12/01/2017 3:18:20 PM PST by Fungi (Fungi rule the world, no one knows it yet.)
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To: Vigilanteman

If Harvard has an endowment of 12 billion. from which the annual income is five percent the tax at 1.4% is not that great. But it is a start.


17 posted on 12/01/2017 3:20:26 PM PST by Bookshelf
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To: Fungi

Think how many hungry chil’run could be fed. Harvard doesn’t need that much money.


18 posted on 12/01/2017 3:43:58 PM PST by Ken H (Best election ever!)
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To: cotton1706

1.4% is way too low. Make them live up to their words. Fair share and all.


19 posted on 12/01/2017 3:47:42 PM PST by BookmanTheJanitor
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To: cotton1706

It is also time to start taxing private foundations. The Ford Foundation, Carnegie Foundation, Rockefeller Foundation, George Soros’s foundation and many others spend hundreds of millions of dollars per year on social justice work targeted at destroying the republic and western civilization. The work of these “nonprofits” should not be supported by the taxpayer through the tax code.

Reform of foundations would encourage foundations to distribute the assets of the foundation within 10 years of its establishment as follows:

1) Limit the tax exemption on income from foundation assets to 10 years from the date the foundation is established.
2) Limit the tax deductibility of donations to a foundation and activities or programs of the foundation to 10 years.
3) Ten years from the date the foundation is established, the foundation’s assets will be subject to an asset tax of 5%.
4) All assets and retained income from the investments of the foundation must be distributed according to the charter of the foundation within 25 years of the foundation being established. Any assets remaining on the 25th anniversary of the foundation will be donated to the US Treasury general fund.
5) From inception real and personal property of foundations, as well as financial assets, will be subject to state and local property taxes and intangible taxes.


20 posted on 12/01/2017 3:51:29 PM PST by Soul of the South (The past is gone and cannot be changed. Tomorrow can be a better day if we work on it.)
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