The bill would impose excise taxes on certain investments held by private colleges and universities with more than $1 billion in assets not used directly for their educational purpose. State colleges and universities are excluded. A school acquiring an investment tied to a person on specified Commerce Department or Federal Communications Commission lists would owe a tax equal to 50% of the investment’s fair market value when acquired. The bill would also tax 100% of net income and gains from certain listed investments held for a full year. Investments made through pooled funds and assets held by some related organizations could be included. The Treasury Secretary would create and maintain a list of the persons covered.
The proposed taxes would apply to qualifying institutions, not directly to students or families. The bill does not specify how an institution’s investment choices might change.
The proposed tax is 50% of the value of covered investments when acquired, and 100% of net income and gains from qualifying investments held for a full year. No publicly available information gives an estimate of total tax payments or administrative costs.
No publicly available information.
No publicly available information.