Some colleges have billion-dollar endowments — and now the GOP wants to tax them for it

In the GOP tax plan, private universities with assets of more than $100,000 a student will pay a 1.4% excise tax on their net investment income.

House GOP leaders released
Colleges and universities will pay a 1.4% excise tax on their endowment investment income if the "Tax Cuts and Jobs Act" is passed.
It's a big change from the current system, where college endowments are not taxed.

Under the proposed sweeping legislation, p

That's a big change from the current system, where colleges aren't taxed on their endowment earnings because they're nonprofit institutions.

For fiscal year 2017, college endowments with more than $500 million had a median investment gain of 13.3%. For endowments of all sizes, that gain was 11.3%

amount of wealth