Very little attention has been paid to this, but this new tax could shake the balance of power in the endowment world.
---- Hardest hit ----
Endowment taxes will increase 10x for:
-- Princeton
-- Yale
-- Stanford
-- MIT
-- Harvard
Their rate will jump from 1.4% to 8%, which still looks mild compared to the original House proposal of 21%.
---- Hit but could be worse ----
Taxes will increase to 4% (up nearly 3x) for:
-- Penn
-- Notre Dame
-- Dartmouth
-- Vanderbilt
-- Washington University
-- Rice
-- Chicago
-- Duke
---- Off the radar ----
Largely untouched, and potentially advantaged by flying under the threshold, are:
-- UTIMCO
-- Texas A&M
-- University of California
-- Michigan
-- Johns Hopkins
-- Columbia
-- Cornell
-- Virginia
-- Ohio State
-- USC
These schools fall below the $500K-per-student threshold or don’t meet the 3,000 tuition-paying student minimum.
---- Takeaway ----
This chart doesn’t rank by total endowment size; it tracks endowment growth over the last decade.
...and how these funds grow over the next decade may depend less on markets and more on who pays (and doesn't pay) the new taxes.
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