The case against an endowment tax

A proposed tax policy could hurt colleges and society, argues Phillip Levine in an opinion essay for The Review. Last year, when he was a senator from Ohio, Vice President-elect JD Vance introduced a bill to raise the tax on college endowments to 35 percent. While President-elect Trump has not endorsed the bill, he’s supported the notion of increasing the endowment tax. If Vance’s bill were to pass, even the most elite institutions would drain their endowments and cut their operating budgets. And if that happens, colleges might seek to improve their bottom lines by reducing financial aid and enrolling fewer low-income students.
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