View of the Bowdoin College campus, in Brunswick, Maine, from Coles Tower. Bowdoin is one of the rich institutions that would be hit by the GOP endowment tax plan.
From Robert Whitcomb's "Digital Diary,'' in GoLocal24.com:
The Trump regime and its allies in Congress are trying to use the powers of the federal government to attack groups that they see as political enemies. There are numerous examples in the House and Senate tax bills, both of which measures are excessively aimed at further expanding the wealth of the very rich and their families and descendants as the current Gilded Age rolls on.Fr
One of particular interest to New Englanders is a plan by congressional Republicans to impose a 1.4 percent tax on the annual income spun off by the endowments of the about 60 schools whose endowments exceed $250,000 per student. This has put pressure on some of our region’s famous private institutions – as The Boston Globe has noted, “including Harvard, Dartmouth and a dozen other New England schools.’’
Now, I have long complained that some of these “not-for-profit’’ schools have long been run in ways that raise eyebrows, especially with the astronomical salaries and perks that they pay too many of their administrators. And one wonders why so much money is spent for luxury frills such as climbing walls, gourmet food and spas.
Still, most of their endowment income is spent to pay for such traditional college functions as teaching, research, financial aid and building maintenance. And many of these institutions have international reputations that draw the brightest students, teachers and researchers, who help strengthen the U.S. economy and wider society, especially through innovation. New England, with its renowned collection of celebrated colleges and universities, has especially benefited from this sector. It bears noting that the bigger the endowment, the more money for scholarships and other forms of financial aid.
The Trump regime and some Republicans in Congress are trying to use the byzantine tax code to weaken institutions associated with the highly educated voters who often oppose the current demagogic version of the Republican Party and who believe in such things as science.
Meanwhile, Harvard Business School Prof. Clayon Christensen predicts: "50 percent of the 4,000 colleges and universities in the U.S. will be bankrupt in 10 to 15 years." Please hit this link to read more: https://www.cnbc.com/2017/11/15/hbs-professor-half-of-us-colleges-will-be-bankrupt-in-10-to-15-years.html?__source=twitter%7Cmain
He’s right. There are too many colleges
