The University Endowment Income Tax: Who Will Pay it and Why Was it Implemented? | Econofact
The effects of the endowment tax remain unclear given the ambiguity in its wording. But the likely revenues raised from this tax are minuscule when considered in the context of the overall reduction in tax receipts or the size of the federal budget. Also, the tax is unlikely to affect the sticker price of a college education or to alter financial aid offered by those institutions affected by the tax. When plausible economic justifications for a change in tax policy fail, political considerations become a more credible explanation for their enactment. This seems to be the case regarding the higher education endowment income tax. by Nora Gordon by Joel Trachtman by David Deming For questions, comments, submissions or media inquiries, please email EconoFact: contact@econofact.org REPRODUCING ECONOFACT CONTENT Like what you're reading? Subscribe to get the latest EconoFact content straight to your inbox.
Tax Policy Tax Policy Share Facebook X / Twitter Bluesky LinkedIn Copy Link The University Endowment Income Tax: Who Will Pay it and Why Was it Implemented? By Phillip Levine · January 25, 2018 Wellesley College The Issue: The recently enacted federal tax legislation levies a tax on the endowment income of colleges and universities with large endowments. The schools that will likely be covered by the new provision have large sticker prices and low- and middle-income students tend to be underrepresented in their student bodies. Tom Reed, a Republican congressman from New York, argues the
Explore this link on the map →related reading
- Universities’ nightmare scenario is here, and it’s not just federal funding cuts | Semaforsemafor.com
- The Epicurean Dealmaker: Et in Arcadia Egoepicureandealmaker.blogspot.com
- High Anxiety | No Mercy / No Maliceprofgalloway.com
- Fueled by soaring financial markets, Brown endowment return tops 50% | Brown Universitybrown.edu
- The Birth of the New American Aristocracy - The Atlantictheatlantic.com
- College financial aid: It’s a sham that depends on what colleges think families will pay.slate.com
- David Swensen Is Great for Yale. Is He Horrible for Investing? | Institutional Investorinstitutionalinvestor.com
- Harvard Will Survive - by Hollis Robbins - Anecdotal Valuehollisrobbinsanecdotal.substack.com
- The Privileged Poorproduction.hup.harvard.edu
- Home | College Disparitiescollegedisparities.com
- Ranking 4,600 Colleges by ROI (2025) - CEW Georgetowncew.georgetown.edu
- The Epicurean Dealmaker: Improve Yourselfepicureandealmaker.blogspot.com