House Republicans are proposing a sharp increase to the excise tax on investment income earned by the nation’s wealthiest colleges and universities.
On Monday, the Republican-led House Ways and Means Committee released the full text of the long-awaited tax and spending bill. The legislation would, among many other things, raise the tax on private institutions’ endowment income from the current 1.4 percent to as high as 21 percent, aligning it with the corporate tax rate.
That 1.4 percent tax was established under the 2017 Tax Cuts and Jobs Act, commonly referred to as the Trump tax cuts. It applies to private colleges and universities with endowment assets exceeding $500,000 per full-time student….