Higher Taxes for Wealthy Private Universities and Those Raising Tuition.
This new law increases the tax on investment income for private higher education institutions. Universities that raise tuition faster than inflation will face an even higher tax rate. The aim is to increase financial accountability of universities and potentially curb rising education costs.
Key points
The tax on investment income for private universities will increase from 1.4% to 10%.
Universities that have raised tuition faster than inflation over the past three years will pay a 20% tax.
More universities will be subject to this tax, as the asset threshold for taxation has been lowered from $500,000 to $250,000 per student.
Introduced
Citizen Poll