The bill would impose new federal excise taxes on certain investments held by eligible private colleges and universities with more than $1 billion in assets not used directly for their exempt purpose. State colleges and universities are excluded. The investments covered include equity, debt, and related contracts or derivatives involving people on specified Commerce Department or Federal Communications Commission lists. The tax would also cover investments held indirectly through pooled funds. An institution acquiring a covered investment would face a tax equal to 50% of its value. A separate 100% tax would apply to net income and gains from investments that remained listed investments throughout the year before the income or gain was received or recognized.
The taxes would apply to qualifying institutions, not directly to individual students under the bill's text. The bill does not specify changes to tuition, financial aid, or services. If enacted, its rules would generally apply to taxable years ending after a date tied to enactment or the Treasury Secretary's creation of a list of covered persons.
Qualifying institutions could owe the taxes described above. No publicly available information is provided about total payments or revenue raised.
No publicly available information.
No publicly available information.