Higher Taxes for Universities with Large Endowments and Rising Tuition
This bill increases the tax on investment income of private colleges and universities. Institutions that raise tuition faster than inflation will face an even higher tax rate. This aims to encourage universities to control education costs, potentially impacting student fees.
Key points
The tax on private university investment income will increase from 1.4% to 10%.
Universities with tuition increases exceeding inflation will pay a 20% tax.
More institutions will be subject to this tax, as the asset threshold has been lowered from $500,000 to $250,000.
Expired
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