Massive Increase in Investment Income Tax for Wealthiest Private Universities.
This bill dramatically increases the excise tax on the net investment income of the wealthiest private universities in the US. The tax rate jumps from 1.4 percent to 35 percent for non-religious institutions with endowments exceeding $10 billion. While the tax targets institutions, it could potentially affect their ability to fund scholarships, research, and manage tuition costs for students.
Key points
The excise tax on investment income for specific, very wealthy private colleges increases from 1.4% to 35%.
The increase applies only to non-religious institutions whose non-exempt purpose assets exceed $10 billion.
The higher tax rates take effect for taxable years beginning after December 31, 2023.
Expired
Citizen Poll