Comments on: Tax The Rich Give To The Infrastructure

By: Dan

Dan — Thu, 27 Sep 2007 02:30:00 +0000

“Not really” was in response to creation of new categories; I think his implication was that Universities should be pigeonholed into one of the existing taxation categories (that is, for-profit or not-for-profit), based on the same criteria we use for any other organization.

That doesn’t strike me as a particularly radical position.

By: steve

steve — Wed, 29 Aug 2007 16:28:05 +0000

You have said that 3 times? Three times. Really three times. Why I had no idea you said that 3 times. Huh, 3 times.

Anyway, as I said in response to your observation, which you made 3 times, how would you feel about changing that status so that university endowment income can be taxed.

Your resposne: ‘not really’.

Thus I wonder why you think it’s okay the income from the endowment of private universities not be taxed but other large organization’s income, like corporations should be taxed.

By: darwin

darwin — Wed, 29 Aug 2007 15:58:55 +0000

The difference is they’re non-profits? Which I’ve said like 3 times?

By: Jamie

Jamie — Mon, 27 Aug 2007 20:03:20 +0000

Would you rather they be taxed twice? That will teach those darn colleges.

By: steve

steve — Mon, 27 Aug 2007 14:29:37 +0000

Jamie

We are talking about the money turned over from a trust each year to be used by the university as income. From what I can tell those funds are not taxed because universities have a non-profit designation.

Darwin

I find it rather revealing your reluctance to transform the status of certain universities receiving exorbitant income from their endowments so that they are taxable but at the same time show no compunction towards taxing wealthy corporations or people.

Whats the difference?

By: Jamie

Jamie — Sun, 26 Aug 2007 23:27:49 +0000

Endowments are trusts that are taxed. Look it up. Contributions from the sender are tax-free. It’s a way for wealthy folks who got a good education to maximize on tax breaks by giving to the ole’ alma matter. I have no problem with that.

By: darwin

darwin — Fri, 24 Aug 2007 17:28:30 +0000

Not really; maybe we should investigate universities closely to make sure they’re following whatever guidelines they need to to qualify as non-profits, or examine thsoe guidelines to see if they’re sufficient given the modern economy, but if universities are valid non-profit organizations then they should be taxed as such.

By: steve

steve — Fri, 24 Aug 2007 15:30:44 +0000

Do you think a new category should be created for non profits specifying that universities income from endowment is taxable?

By: darwin

darwin — Fri, 24 Aug 2007 12:34:28 +0000

If they’re non-profit organizations (and honor the requirements of being such), then all their sources of income should be taxed at a reduced rate.

By: steve

steve — Thu, 23 Aug 2007 20:52:48 +0000

Did you answer my question.

Stated again:

Do you think income from university endowments should be taxed?