Endowment tax
Endowment tax is a proposed US taxation of endowments. The proposers believe that certain institutions are taking advantage of the endowment systems tax free status when their non-profit status is questionable. The city of Cambridge, Massachusetts, has proposed taxing MIT and other major universities on these previously exempt, non-profit earnings.[1]
A financial endowment is a transfer of money or property donated to an institution, with the stipulation that it be invested, and the principal remain intact. The total endowment can be several billion dollars at some of the United States' richest universities. The non-profit status of some institutions like hospitals has been questioned in the United States House Ways and Means Committee.[2][3]
See also
- List of U.S. colleges and universities by endowment
- Internal Revenue Service (US tax collection agency)
- PILOT Payment in Lieu of Taxes
References
- ^ He, Ray C. (October 4, 2005). "Cambridge Seeks to Tax Earnings on Endowment" (Web). Volume 125, Number 44. The Tech.
{{cite web}}: Italic or bold markup not allowed in:|publisher=(help) - ^ "Ways and Means Questions Nonprofit Hospitals' Tax Status" (Web). The Commonwealth Fund 1 East 75th Street, New York, NY. Retrieved 2007-01-22.
- ^
Jill Horwitz (2005-05-26). "Testimony Before House Ways and Means Committee" (PDF).
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