In Massachusetts, legislators are considering taxing higher-education institutions with endowments over $1-billion, arguing that the universities don’t do enough for their surrounding neighborhoods considering their vast wealth, reports The Boston Globe.

The measure would impose a 2.5 percent annual tax assessment on Amherst College, Boston College, Boston University, Harvard University, Massachusetts Institute of Technology, Smith College, Tufts University, Wellesley College, and Williams College. It is estimated the tax would bring $1.4-billion into the state’s coffers.

“It’s mind boggling that one entity not paying taxes has $34-billion. How do you justify that?” said Rep. Paul Kujawski, a Democrat and the plan’s chief supporter, referring to Harvard’s endowment, the largest in the nation. “When people can’t afford to live. How do you justify not taxing them?”

Critics called the proposal misguided. “You’d be taxing success here,” said Kevin Casey, Harvard’s associate vice president for government, community, and public affairs. “Over time, this would put us at a real competitive disadvantage, which would drastically hurt the Commonwealth.”

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