Taxpayers Hurt by Tax-Exempt Endowments

As the Chronicle of Higher Education reported:

“Most of the benefits, they say, result because endowments are exempt from capital-gains taxes. Mr. Klor de Alva, president of the Nexus center, and Mr. Schneider, a vice president of American Institutes of Research and president of College Measures, highlight the ways these “invisible” tax breaks disproportionately flow to elite private colleges like Princeton University (which they calculate as getting the equivalent of a $105,000-per-student subsidy) compared with the modest subsidies that flow to other private and public institutions that serve higher proportions of low-income students.”

Related Topics