"Tax legislation working its way through the U.S. Senate would put a new levy on endowments held by large private universities and colleges, a proposal that more than three dozen higher-education lobbying groups on Tuesday called 'fundamentally flawed,'" Reuters reports.
"The groups, led by the American Council on Education, wrote that 'creating a new and unprecedented tax on endowments' would redirect large amounts of money to the federal government and 'away from providing scholarships to our students and supporting research and education.'
'It also would effectively be a tax on donors’ contributions and shift money from the dedicated purpose for the donation,' they wrote in a letter to the Senate Finance Committee’s Republican chairman, Orrin Hatch, and top-ranking Democrat, Ron Wyden...The groups wrote that, even though the tax would only hit private institutions, it would set a precedent and could ultimately lead to taxation of all higher education investment funds. The groups included the Association of Catholic Colleges and Universities and the National Association of Student Financial Aid Administrators."
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Publication Date: 11/16/2017