How the Republicans' Tax Plan Threatens Higher Ed

It’s a nervous time to be a university. Forget the political activism that has been convulsing campuses over the past year; the Republican tax plan is now taking aim at the money that funds those campuses, particularly elite research universities. It proposes a tax on university endowments, an end to the tax deduction for student loans, and treating employer tuition reimbursement as income. This last would not only threaten a revenue stream for colleges and universities, but also make it much more expensive to run Ph.D. programs, where students normally get a tuition waiver as part of their package.

Universities are understandably concerned. And they’re not the only ones. Levying heavier taxes on education sounds perilously close to spitting on an American flag while denouncing motherhood, baseball and apple pie. So this might be a good time to ask whether we really ought to be subsidizing higher education -- particularly elite higher education -- as much as we are.