If you are like me, you get tired of extremely wealthy lefties lecturing all of us on not being charitable enough, that not wanting to give all our money to government makes us unfeeling, sadistic monsters who hate the poor. But let’s be honest, if the rich lefties (Elizabeth Warren, anyone? Bernie Sanders?) were truly invested in using their money to benefit their fellow human, they wouldn’t be wealthy to begin with. They would give all their excess cash to the government and live in modest ranch houses or apartments, driving a car a few years old and shopping at Walmart.
Some of the most hypocritical of these people are the ones running our oldest and wealthiest universities. These are the people with endowments in the tens of BILLIONS of dollars, who nonetheless jack up tuition prices every year, make teaching assistants work for free or a pittance, drive students into massive debt while providing them with useless degrees, at the same time pulling in six-figure salaries themselves every year. Well, now, the GOP tax bill is forcing them to put their money where their mouths are and cough up some of those giant endowments.
Who would think it would take tax legislation to get all mega-rich universities to cough up a little bit more for the government? Do they hate poor people or something?
From The Daily Caller:
Big-money universities will soon have their endowments taxed under the bill that GOP lawmakers passed in December.
Approximately 20 to 30 of the wealthiest universities will be subject to a 1.4 percent excise tax on their endowments, according to Neil McCluskey, a director at the pro-liberty Cato Institute who spoke with The Daily Caller News Foundation Thursday.
The 1.4 percent excise tax will be levied on universities with endowments totaling more than $500,000 per student and will include prestigious Ivy League institutions like Harvard University, which has a $35.7 billion endowment, and Yale University, with a $25.4 billion endowment.
“It would be shocking if schools didn’t find a way to move or reclassify [endowments],” McCluskey, director of Cato’s center for educational freedom, told TheDCNF.
“There’s a lot of uncertainty about how this will actually be done and we probably won’t know until the regulations are written,” he said. The director explained that the bill technically uses the term “net investment income,” which he believes refers to the earnings that schools make on their endowments, as opposed to the total endowment.
….McCluskey estimated that the federal government would accrue around $20 million from the endowment provision.
Well, $20 million isn’t really all that much but it sure could cover some boxed lunches for low-income people, or you know, morning-after pills for college students.