House GOP Tax Bill Targets College Endowments, Royalties And Support From Private Foundations

Contributing sentiments towards policy:

56% : The higher graduated tax rate, combined with the new formula for calculating per-student endowments, which would be effective beginning in calendar year 2026, would raise an additional $6.7 billion in revenue for Uncle Sam through fiscal 2034, the Joint Committee on Taxation estimates.
55% : Currently, only schools with at least 500 full-time equivalent, tuition-paying students and an endowment worth at least $500,000 per student are subject to the tax.
55% : This proposal, which applies to more than just colleges, would generate an additional $3.8 billion in revenue between fiscal years 2025 and 2034, per the Joint Committee on Taxation.
54% : That would in turn boost schools' endowment-per-student wealth, ultimately requiring more colleges to pay the tax and some schools to pay the tax at a higher rate.
53% : Colleges may have more success in lobbying the Senate to soften the changes to the endowment tax, says Steven Bloom, assistant vice president for government relations at the American Council on Education.
52% : A Forbes analysis last month, based on fiscal 2023 endowment and enrollment totals, identified 11 additional schools, including Trump-targeted Columbia University, that would be roped into paying the tax.
52% : Schools with a per-student endowment worth between $750,000 and $1.25 million would pay a 7% tax on investment income, and schools with between $1.25 million and $2 million in per-student endowment assets would pay tax at a 14% rate.
51% : The royalties would be treated as "unrelated business taxable income" and any school that receives revenue from licensing its name or logo would be taxed.
48% : Schools with a per-student endowment worth between $500,000 and $750,000 would continue to pay the current 1.4% tax rate.
46% : A plan to raise the tax on the investment earnings of the richest college endowments from 1.4% to as high as 21% has grabbed headlines, but three other proposals could also hit schools' bottom lines: a change to the way schools' vulnerability to the tax is calculated; a tax on some nonprofit royalty income; and increased taxes on private foundations.
44% : In addition, some schools already subject to the tax would see a dramatic increase in the calculation of their per student endowment.

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