6 days ago
- Business
- Wall Street Journal
Colleges Hope to Stave Off Big Tax Hike by Pledging to Spend More Endowment Cash
Some of the nation's wealthiest universities are hoping to avoid a huge potential tax hike by pitching an alternative plan to Congress: a pledge to spend more of their own money.
The current version of President Trump's tax bill, which passed the House last month, includes a hefty, 21% annual tax on the wealthiest schools' investment income, up from the current 1.4% rate. The plan could add hundreds of millions of dollars to many schools' annual tax bills. The White House said recently that the tax increase would create accountability for 'woke, elitist universities.'
