Surtax on large private college endowments

A USEFUL ADDITION TO TRUMP’S TAX REFORM PLAN:

A Modest Proposal to Reduce “Inequality:”

A surtax on large private college endowments—say on all endowments that are more than something like $1 million per student. This would hit the ivy league schools that these days are raking in nearly $1 billion a year in contributions according to the latest reports. (I recall an old line from Conan O’Brien—a Harvard grad—about Harvard’s donor pitch: “We’re Harvard. We don’t need your money. We just want it.”) Or instead of a surtax directly on endowments, reduce the tax deductibility of donations to college endowments above a certain level.

And if Republicans really want to start riots in faculty clubs, they should pass Obama’s community college plan with one proviso: that all community college credits be fully transferrable to any four-year college that accepts any federal funding (which is every institution of higher learning except Hillsdale and one or two others). Watch the four-year colleges sputter with indignation.

Seems fair.

24Posted at 8:00 am by Glenn Reynolds