House GOP Tax Bill Targets University Endowments, Foundations, Nonprofits

House Republicans have introduced a tax bill targeting wealthy private universities and nonprofit foundations, proposing steep increases in taxes on endowment investment income and foundation assets. The bill establishes a tiered tax system where private universities with endowment assets per student exceeding certain thresholds could face tax rates rising up to 21%, affecting elite institutions such as Harvard, Yale, and Stanford. Additionally, private foundations would see excise taxes increase progressively, with those holding assets over $5 billion facing a 10% tax, exemplified by the Gates Foundation potentially incurring a tax bill exceeding $460 million. The bill also proposes recalculating student counts for endowment tax eligibility by excluding foreign and undocumented students, thereby expanding the number of colleges subject to the tax. These measures are part of a broader Republican effort to reduce federal revenues by nearly $5 trillion over ten years while funding tax cuts and spending reductions. Critics, including philanthropic leaders, warn that these taxes could harm charitable giving and the beneficiaries of nonprofit support, arguing that such policies unfairly penalize organizations that do not align with the administration's political views.