Cornell's Pollack Says Endowment Tax Plan Lacks Policy Purpose
ByCornell University President Martha Pollack said she’s concerned about the Republican proposal that would tax some college endowments and require graduate students to pay taxes on stipends.
“It’s a bill that really will hurt higher ed and without any clear policy purpose in doing so,” Pollack said Tuesday on Bloomberg TV.
Cornell would pay a 1.4 percent tax on annual investment earnings if the House proposal becomes law. It targets schools that have $250,000 of endowment per student. Cornell, whose $6.8 billion endowment is worth about $300,000 per student, would be spared the tax under the Senate version, which has a higher threshold.
Cornell University President Martha Pollack discusses the state of higher education in the Trump era.
Read more: Senate Twist on New Endowment Tax Could Spare Some Schools
Endowments pay for expenses including financial aid, faculty salaries and academic programs.
“This is not a bill that is going to increase access for students or drive down costs,” Pollack said. “It’s not a bill that’s going to reward or incentivize philanthropists.”
— With assistance by Scarlet Fu, and Julia Chatterley