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May 08, 2008

Massachusetts Lawmakers Consider Taxing Big Universities

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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Thursday May 8, 2008 | Permalink

Comments

1. My, my, my, a Democrat wants to tax a nonprofit entity because it is successful. Watch out Salvation Army, Red Cross, Catholic Charities, YMCA and others. You’ll be next.

   jcampbell@visionstrategygroup.com

   — Jamey Campbell    May 8, 01:26 PM    #

2. We tax success all the time, businesses, appreciated and/or improved real estate. It’s laughable that Kevin Casey can state that a 2.5 annual tax assessment could put Harvard at a disadvantage. (Although it is not clear- 2.5% of what?) An institution with billions that hammers their donors for more, gets federal, state and foundation grant money, and still charges professors to park their cars should contribute more to the state. (Here’s the link to their parking price list http://www.uos.harvard.edu/transportation/par_fac.shtml#fac3

   — Suzanne    May 8, 01:26 PM    #

3. Harvard’s non-profit status is not a right, its a privilege based on it’s commitment to serve the public good. When it hoards tens of billions of tax free dollars instead of putting them to use, it calls into question the integrity of that commitment.

   — Scott    May 8, 02:42 PM    #

4. Suzanne: Thank you for that link to the parking price list! Incredible.

   — Bret    May 9, 09:17 AM    #

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