Two U.S. congressmen introduced a bill Thursday to repeal an excise tax on college endowments that is expected to affect about 30 schools including Harvard, Yale and Princeton.
The bill was sponsored by John Delaney, a Democrat from Maryland, and Bradley Byrne, a Republican from Alabama. Byrne was among a group of legislators who signed a letter last year urging Congress not to include the tax in the overhaul passed in December. He’s a graduate of Duke University, one of the schools that may pay a 1.4% excise tax on annual investment income.
“America’s colleges and universities are one of our singular assets as a country,” Delaney said in a statement. “We lead the world in higher education and it gives us an incredible advantage in today’s high-tech, high-skill global economy. We should be leaning into these advantages, not undermining them.”
About 50 college presidents on March 7 sent a letter to congressional leaders asking them to “revisit this misguided policy.” Many of the schools are expected to pay the tax, including Grinnell, Smith and Williams colleges.