HARTFORD, Conn. (AP) — Some of the most prominent American universities are assailing a proposal to tax their endowments.
The tax plan released this week by Republicans in the U.S. House of Representatives comes amid growing legislative scrutiny of the finances of higher education. It calls for a 1.4 percent tax on endowment income at the wealthiest private universities.
For many colleges and universities, the proposal is a bid to raid resources used to provide financial aid, support teaching and research and carry out community service.
Yale University has an endowment of $27.2 billion. University spokesman Tom Conroy said it's disappointing the legislation relies so heavily on universities to "raise revenue to enable tax cuts."
Endowments at many schools have climbed above a billion under tax protections envied by other fundraising institutions.