Let’s Tax the Very Rich

September/12/2012 16:55PM
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If you’ve ever read this blog, you can’t believe I said that. What am I thinking?

I’m thinking about taxing university endowments. Why not? They are in such an enviable position maybe we can smack some sense into them.

They just keep raising tuition in a down economy. Why? Because they can. The money comes right back through your tax dollars. In the form of student loans from the government.

Yet these institutions sit on trillions in endowments. The University of Texas has $17 billion in their endowment fund. But, tuitions keep going up. The average student loan in was $15,651 in 2005 and it was $24,301 this year.

Here’s my deal. Start taxing tuition’s at a base level. Say, $15,000. And, give tax credits for money used from endowments for tuition help. Put these cats in the trick bag. Start using that endowment money if you need more money, but don’t keep gouging kids for tuition because you can. If you charge kids $50,000 a year for tuition, you pay the government a tax of 10% for every dollar above $15,000, or $3,500 a year for each student that pays full tuition. Or, you could use endowment money to offset that kid’s tuition. If you give the student a $35,000 grant, you get a 20% tax credit, or $7,000 for that grant. You make the choice, keep gouging and pay taxes or stop gouging and help kids with tuitions and reduce the tax bill.

Balance your books on the endowment fund, not on the backs of the students and the taxpayers. Obama is always looking to Wall Street for scams, he needs to look to those ivy covered walls of our colleges and universities.

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