Another Bill Introduced to Tax College Endowments

May 10, 2024

WASHINGTON, D.C. – Today, U.S. Congressman Max Miller (OH-07) introduced the American Workforce Act, a bill to overhaul workforce education. The legislation provides high school graduates with a $9,000 workforce training voucher to participate in education programs designed by employers and taught by validated trade associations, community colleges, high-schools, non-profits, or labor unions. The vouchers will be paid for in part by taxes on wealthy private college endowments. Original co-sponsors of the legislation are Rep. Derrick Van Order (WI-03) and Rep. Anthony D’Esposito (NY-04).

Here’s the part of the text imposing a new tax. This is the second bill this week looking to tax university endowments. To read the entire bill see here:

118TH CONGRESS
2D SESSION

H.R. 8316

To establish a program of workforce development
as an alternative to college for all, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 8, 2024

Mr. MILLER of Ohio introduced the following bill which was referred to the Committee on _____

A BILL

To establish a program of workforce development as an alternative to college for all, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “American Workforce Act”.

. . .

SEC. 7. EXCISE TAX ON CERTAIN LARGE PRIVATE COLLEGE AND UNIVERSITY ENDOWMENTS.

(a) IN GENERAL. — Subchapter H of chapter 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

“SEC. 4969. EXCISE TAX ON CERTAIN LARGE PRIVATE COLLEGE AND UNIVERSITY ENDOWMENTS.

“(a) TAX IMPOSED. — There is hereby imposed on each specified applicable educational institution for the taxable year a tax equal to 1 percent of the aggregate fair market value of the assets of the institution at the end of the preceding taxable year.

“(b) SPECIFIED APPLICABLE EDUCATIONAL INSTITUTION. — For purposes of this subchapter, the term ‘specified applicable educational institution’ means any applicable educational institution, other than an institution which is religious in nature, the aggregate fair market value of the assets of which at the end of the preceding taxable year (other than those assets which are used directly in carrying out the institution’s exempt purpose) is at least $2,500,000,000.

“(c) OTHER TERMS. — For purposes of this section —

“(1) ASSETS. — The rules of section 4968(d) shall apply.

“(2)STUDENT. — The rules of section 4968(b)(2) shall apply.”.

darryll k. jones