CONGRESS FOR VOTERS

RepublicanBill · H.R. 446· House(119-HR-446)

Endowment Tax Fairness Act

Rep. Nehls
Age: 58 years
Texas
Introduced
1/15/2025
Last activity
1/15/2025 — Referred to the House Committee on Ways and Means.
Sponsored by
Troy Nehls
Cosponsors
Republican - 3Democrat - 0
Taxation
  1. Introduced
  2. In Committee

What this bill would do

This bill, known as the Endowment Tax Fairness Act, proposes changes to the Internal Revenue Code of 1986. It specifically aims to increase the excise tax rate on the investment income of private colleges and universities. Currently, the tax rate is set at 1.4 percent, but this legislation would raise it to 21 percent. The revenue generated from this increase would be deposited into the general fund of the Treasury. These funds are intended to be used to reduce the national deficit and, subsequently, the national debt.

Yes

  • Does this raise the taxes companies pay?+7

    The bill significantly increases the excise tax rate on the investment income of private colleges and universities from 1.4 percent to 21 percent.

  • Does this reduce what the federal government owes?+5

    The bill mandates that revenue from the increased tax be used to reduce the national deficit and debt.

The opposite

  • Does this make college cost less?-4

    The significant increase in the excise tax on investment income may reduce the resources available to private colleges and universities for student financial aid.

  • Would people with substantial wealth be better off under this?-3

    The tax targets large endowments often associated with high-net-worth donors and institutional wealth.

  • Would students be better off under this?-3

    Higher taxes on university endowments could potentially lead to reduced funding for student services or tuition increases.