Now it’s threatening to spread to our education institutions.
Lawmakers have a new solution for the high cost of college: make the wealthiest universities pay for it.
Of course. Because competition among colleges to bring down costs, or reducing Federal funding for them under [pick an excuse] programs to reduce the non-student population money available to drive up costs just can’t be done. Too many special interests would be perturbed by such a thing.
Elite US schools have grown richer since the 2008 financial crisis by investing their endowment money in everything from California vineyards to Chinese startups. State and federal policy makers now want to tax those profits….
Gotta punish that success. How dare these institutions accrue moneys without a government’s faretheewell?
…or force the wealthiest schools to spend down their endowments—to defray soaring student bills and refill depleted higher-education budgets.
Which governments could do easily by not sending so much taxpayer dollars to these schools. But…special interests.
Interestingly, Republicans are in on this move.
Congressman Tom Reed (R, NY)…floated a plan late last year that would require endowments bigger than $1 billion to pay out a quarter of their earnings in grants to working-class families or face steep penalties or even the loss of their tax-exempt status.
It isn’t Government’s place to tell these schools—or any other institution—how to spend its money. It is Government’s place to not send taxpayer dollars to these schools—or to any other institution.
No wonder Conservatives are so angrified.