"House Republicans Propose Significant Increase in University Endowment Tax"

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"House Republicans Propose Significant Increase in University Endowment Tax"

[!CDATA[House Republicans have proposed a significant increase in the endowment tax as part of their comprehensive tax and spending legislation. The tax portion of the legislative package, unveiled by the House Ways and Means Committee, suggests raising the tax on the earnings of the largest university endowments to 21%, aligning it with the corporate tax rate. Under the 2017 Tax Cuts and Jobs Act, universities and colleges with endowment assets exceeding $500,000 per student were subject to a 1.4% excise tax on investment income. The new proposal aims to raise the rate for schools with larger endowments, reaching 21% for those with student adjusted endowments of $2 million. Religious universities and state schools would be exempt from this tax increase. This provision is part of the revenue-raisers included in the House Ways and Means Committee's reconciliation text, which allows bills to pass with a simple majority in the Senate, bypassing the filibuster.]]