The Sneaky Way Trump is Putting a Tax on Elitist PC Colleges

The Sneaky Way Trump is Putting a Tax on Elitist PC Colleges, by Robert Wenzel.

President Trump is really going after those who do not support him. The big one is the cap on the deduction for SALT that will largely affect the anti-Trump blue states.

The state and local tax (SALT) changes mean some of the state taxes people pay will no longer be deductible from income for federal tax purposes. Thus, the high taxing Democrat states will no longer get such a large subsidy from the rest of the nation.

But Trump has also slapped a new tax on the elitist colleges that do not support him. …

As I have pointed out Trump tax reform is to a significant degree just a shift of the tax burden on to those who do not support him. He is not shrinking government at all. He is introducing a new level of banana republic takings by cronies close to him and punishment of those who do not support him. What a bastard.

But he is our bastard, countering their bastardy. From an article in the New York Times by Greg Mankiw:

The part of the [new tax] bill that most disappoints me is a small, simple change in policy: a new tax on large university endowments.

True, I am not completely objective here. I have spent the past 40 years of my life at three of the targeted institutions, as an undergraduate at Princeton, graduate student at the Massachusetts Institute of Technology, and faculty member at Harvard.

And the tax is not huge. It is a mere 1.4 percent of investment income and is expected to raise only $1.8 billion over 10 years. Because it applies only to universities with endowments of more than $500,000 per student, just a few dozen schools are affected.

But this new tax is not trivial. Take Princeton. It has an endowment of $24 billion. If it earns a 10 percent return, the annual cost of the tax will be roughly $34 million, more than $4,000 per student (including both undergraduate and graduate students). …

Is the endowment tax nothing more than tribal politics? Conservatives are now in control, so let’s tax those liberals!

In Africa, where tribal politics runs raw, when a tribe gets to run government it often gives all the government jobs to its tribe, and taxes the other tribe(s) especially hard. And if there is ever a change in power, then the boot is on the other foot. Hardly a recipe for harmony or amicable government. Sad to see the US heading in that direction — but the left has been doing it for decades. It is with mixed feelings that I see the right fighting back in the US.