Referred to the House Committee on Ways and Means.
The bill amends Internal Revenue Code section 4968 to raise the excise tax on private colleges' and universities' investment income from 1.4% to 10% and lowers the endowment-assets-per-student threshold triggering the tax from $500,000 to $200,000. The changes apply to taxable years beginning after enactment.
Support for higher tax rate: liberal positive, conservative strongly negative.
Simple statutory change but politically contentious; substantial lobbying from higher-education and donor communities expected.
The bill amends Internal Revenue Code section 4968 to raise the excise tax on private colleges' and universities' investment income from 1.4% to 10% and lowers the endowment-assets-per-student threshold triggering the tax from $500,000 to $200,000.
The changes apply to taxable years beginning after enactment.
High fiscal impact and concentrated opposition, no compromise features; narrow drafting helps clarity but not acceptability.
How solid the drafting looks.
Support for higher tax rate: liberal positive, conservative strongly negative.
These are examples from the analysis, not a ranked list of the most-affected groups.
Support for higher tax rate: liberal positive, conservative strongly negative.
Likely broadly supportive because the bill targets wealthy institutional endowments and increases taxation on concentrated institutional wealth.
Supporters would view it as promoting fiscal accountability and discouraging hoarding of endowment assets.
They may still watch for negative impacts on student aid or research funding.
Mixed view: recognizes fairness argument but worries the 10% rate and lower threshold are abrupt and large.
Would seek more evidence on revenue, behavioral effects, and a phase-in to limit shocks.
Open to compromise adjustments.
Likely opposed as an overreach that taxes private institutions and their investments heavily.
Viewed as punitive, risking donations, academic flexibility, and institutional autonomy.
Would call for repeal or major narrowing.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
High fiscal impact and concentrated opposition, no compromise features; narrow drafting helps clarity but not acceptability.
The bill has not accumulated any surfaced votes yet.
Support for higher tax rate: liberal positive, conservative strongly negative.
High fiscal impact and concentrated opposition, no compromise features; narrow drafting helps clarity but not acceptability.
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