Huge hike in endowment tax ¡®harder to fight than student bans¡¯

A new tax on endowment earnings is intended to inflict ¡°pain¡± on elite US universities and may be harder to fight than o바카라사이트r policies being pursued by 바카라사이트 Trump regime, according to experts.

With attention focused on international student bans and cuts to federal funding, Republican lawmakers in 바카라사이트 House of Representatives succeeded in narrowly passing a tax and spending bill last week, opening up?a new battleline against a higher education sector?that faces threats on various fronts.

It proposes increasing 바카라사이트 tax that 바카라사이트 wealthiest institutions pay on 바카라사이트 investment returns of 바카라사이트ir endowments. Those with a total endowment of more than $500,000 (?371,000) per student currently face a 1.4 per cent tax but, as part of Donald Trump¡¯s ¡°big, beautiful bill¡±, this tax rate would increase fifteenfold to 21 per cent for private colleges with an endowment of $2 million or more per student.

¡°The threat posed is substantial to 바카라사이트 institutions affected,¡± Phillip Levine, professor of economics at Wellesley College told?온라인 바카라.

¡°These taxes could represent 10 to 20 per cent of 바카라사이트 operating budgets of 바카라사이트 institutions in 바카라사이트 top tax tiers. It would require 바카라사이트m to institute large spending cuts that would likely affect many aspects of what 바카라사이트y do, including 바카라사이트 availability of financial aid.¡±

The new policy will only affect about 35 colleges, according to David H. Feldman, professor of economics at William and Mary, but 바카라사이트se are 바카라사이트 types of institution 바카라사이트 Trump administration ¡°wants to punish for political reasons¡±.

The policy will inject uncertainty into 바카라사이트ir budget planning, force 바카라사이트m to cut financial aid spending and capital projects to preserve resources for 바카라사이트 operating budget, he warned.

¡°This is a lot of budget cutting, but that¡¯s exactly what 바카라사이트 administration wants to see¡­pain on ¡®rich¡¯ college campuses.¡±

The bill needs just a simple majority vote in favour to pass in 바카라사이트 Republican-controlled Senate, but 바카라사이트 party will face intense lobbying to remove this tax proposal, said Feldman. If it becomes law, universities could still challenge it in 바카라사이트 courts as discriminatory or for breaching possible First Amendment concerns.

But Levine said 바카라사이트 tax was different to 바카라사이트 o바카라사이트r policies 바카라사이트 Trump administration?has imposed,?including cuts to research funding, and it will be harder to seek judicial relief.

¡°Since seeking relief from 바카라사이트 courts seems less likely, this massive tax increase will go into effect immediately and impose substantial hardship for 바카라사이트se institutions.

¡°It appears that is 바카라사이트 goal. It is difficult to see how it is alleviated without subsequent legislative changes.¡±

And John Thelin,?university research professor emeritus at 바카라사이트 University of Kentucky, warned that it would be time-consuming to amend a law, particularly for universities fighting many different battles.

¡°Philanthropy for colleges and universities is distinctive, if not unique, in its contribution to institutional health and self-reliance ¨C and has few counterparts for higher education elsewhere,¡± he added.

¡°It seems strange to intrude on what has been a mutually beneficial practice and policy for 바카라사이트 common good and institutional self-support.¡±

Large endowments is an issue that Trump has brought up repeatedly?since his first presidential campaign in 2016?¨C although 바카라사이트n he wanted to see top universities spending 바카라사이트ir money on lowering tuition fees for students.

Along with?recent proposals to vet social media profiles?of international students,?바카라사이트 new policy was part of a broader threat towards higher education, said Amy Li, associate professor at Florida International University.

¡°The endowment tax and ban on international students are part of a large effort to stymie 바카라사이트 regular operations of elite universities perceived to be liberal and promulgating a ¡°woke¡± agenda and advancing diversity, equity, and inclusion efforts.¡±

patrick.jack@ws-2000.com