But a group of private colleges still has its sights set on overturning a new endowment tax passed as part of that bill over the objections of higher ed advocates.
The endowment tax was one of a number of punitive measures included in the legislation that either sought to generate new revenue from higher ed institutions or strip tax benefits for students and student loan borrowers.
After intense lobbying from college groups and student organizations, almost all of those provisions were dropped from the final legislation. The endowment tax remained, however. And although the scope of the provision was seriously narrowed between the introduction of the bill and its final passage — the number of affected institutions dropped from 250 to just 28 — higher ed organizations see the tax as bad policy and precedent setting.
Related: Ivy League Summary: Tax Break Subsidies And Government Payments:
KEY FINDINGS:
1. Ivy League payments and entitlements cost taxpayers $41.59 billion over a six-year period (FY2010-FY2015). This is equivalent to $120,000 in government monies, subsidies, & special tax treatment per undergraduate student, or $6.93 billion per year.