Rich Colleges Would Face Lower Tax Hike Under Senate Bill
The Baker Library of the Harvard Business School on the Harvard University campus in Boston, Massachusetts.
Photographer: Sophie Park/BloombergWealthy US colleges scored a win on Monday with the release of Senate Republicans’ tax bill, which would institute a lower tax increase on endowments than what GOP House members have backed.
Private universities with at least 500 students that have endowments of $2 million per pupil or more would pay an excise tax of 8% under the new bill released by the Senate Committee on Finance. The levy would be placed on net-investment income earned by the endowments. That’s much lower than the 21% rate that was included in the House proposal, which passed the chamber in May.