Richard Vedder (Ohio University)

A conversation with economist and historian Richard Vedder (Part 2 of 2)

The Ohio University professor emeritus talks to Michael E. Hartmann about whether tax-incentivization is a subsidy, the taxation of endowments in higher education, Milton Friedman’s 2003 e-mail to him about negative externalities in higher ed, whether there might also be negative externalities in philanthropy, and the taxation of endowments in philanthropy, as well as a little about the Ohio Bobcats’ football team.

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Harvard Hall, Harvard University (Wikimedia Commons)

Legislation proposed to increase taxes on large university endowments

The College Endowment Accountability Act, according to Sen. J. D. Vance, responds to “a problem, borne of unfairness and of mass subsidy from the American taxpayer, that has now metastasized into one of the most-corrupt and one of the most politically active and politically hostile organizations in the United States of America, and that is elite colleges.”

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An updated collection of articles about the tax treatment of higher-education endowments

President Joe Biden’s recent announcement that the federal government will forgive $10,000 in federal higher-education debt for most borrowers and up to $20,000 for recipients of federal Pell Grants has again brought some attention to large endowments of colleges and universities. Some have proposed increasing taxes on these endowments to help government finance the forgiveness. The 2017… Continue reading An updated collection of articles about the tax treatment of higher-education endowments

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