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The Senate Finance Committee is considering a 2 percent excise tax on university endowments among a number of options to find revenue in an ambitious tax overhaul, according to multiple reports.
A spokeswoman for the committee said she could not confirm the authenticity of a document circulating on the Hill including the proposal. Everything is on the table until a tax reform plan is final, the spokeswoman said.
The proposal would tax endowments valued at $100,000 per full-time student and would be limited to non-public institutions.
The White House released a set of broad -- and vague -- principles for tax reform efforts in April for a tax overhaul with unclear implications for higher ed. Higher education groups have opposed proposals in the past to tax university endowments to address complaints about affordability. The rumored proposal this week appeared crafted only to offset the costs of large tax cuts in the overhaul plan.
"It seems like right now they're motivated by what could raise money," said Brian Flahaven, senior director of advocacy at the Council for Advancement and Support of Education.
