Potential increase in endowment tax has private universities on alert

Potential increase in endowment tax has private universities on alert

Educators at North Carolina's Davidson College say a tax hike on endowments could affect student aid.

Expand the University Endowment Tax - American Compass

Estimated Revenue:$99.4 billion 2025–2034. This assumes expanding the endowment tax to cover universities with endowments greater than $250,000 per student, increasing the tax rate to 21%, and an endowment growth rate of 7.75%. Summary The Internal Revenue Code exempts specified nonprofit organizations from paying federal income tax. The government confers this preferential tax treatment to support organizations that advance the public good. The…