The reason that HPS can offer such incredible financial aid to kids who aren’t able to afford it- including the donut hole kids - is because they have such large endowments.Why is it “fair” to penalize them?They are private institutions that make an education at their incredible space affordable for kids who couldn’t otherwise afford it. I don’t get it.
Not sure I agree with it, either, but I understand it. (btw: Both parties have been trying to figure out ways to ‘make’ the wealthy private colleges pay more, so the concept is bipartisan.)
The issue, I think, is that schools like HYPS, which ‘clearly don’t need the money(!)’, are getting gifts in major part bcos of the tax deduction (charitable contributions on Schedule A) taken by the wealthy donors. So this is a backdoor way to tax some of those tax-free donations without capping or eliminating the tax deduction.
The list of colleges that will be affected: https://www.chronicle.com/article/If-Republicans-Get-Their-Way/241659
Princeton University
Yale University
Harvard University
Stanford University
Pomona College
Amherst College
Swarthmore College
Massachusetts Institute of Technology
Grinnell College
Williams College
California Institute of Technology
Rice University
Wellesley College
Cooper Union for the Advancement of Science and Art
Dartmouth College
Berea College
Washington and Lee University
Bowdoin College
University of Notre Dame
University of Richmond
Smith College
Emory University
Washington University in St. Louis
Bryn Mawr College
Claremont McKenna College
Trinity University (Tex.)
University of Chicago
<why is="" it="" “fair”="" to="" penalize="" them?="" they="" are="" private="" institutions="" that="" make="" an="" education="" at="" their="" incredible="" space="" affordable="" for="" kids="" who="" couldn’t="" otherwise="" afford="" it.="" i="" don’t="" get="">
Imagine that you, instead of paying income taxes, will donate small amount of money (at your discretion) to some charity of your choice. Will it be fair to allow you to be tax-free for the rest of your life from all your income?
Super-rich college, instead of paying its share in taxes, makes a minor donation to kids who otherwise could not afford it. Does it exempt these super-rich colleges from paying income taxes? No.
Does anyone know what happened with education credits in the final bill? I know they were talking about doing away with the Lifetime Learning credit (which allowed grad students to get a 20% credit on the fees they pay to their universities). What credits are left, of any, and are they just for undergrads?
I can’t believe they are going to tax Berea College! That’s just morally wrong.
(And it hurts their constituencies directly since the college is dedicated to first generation college students from Appalachia).
The LLC remains.