As the school year approaches and education costs become a focal point in the upcoming presidential election, Rep. David Joyce, R-Ohio, is spearheading a bill that offers an alternative approach to reducing education expenses by focusing on inflated university endowments.
The bill, co-introduced by Rep. Nicole Malliotakis, R-N.Y., seeks to significantly increase the tax on private universities' endowment profits from 1.4% to 10%. Additionally, it proposes to lower the threshold for the tax from endowments with $500,000 per student to $250,000 per student. Joyce argues that universities have been taking advantage of federal loan guarantees while continuously raising tuition costs.
