Republicans are searching for ways to “pay for” their tax cuts. Democrats want the rich to pay more tax. Here’s a solution that should make everyone happy.
House Ways and Means Committee chairman Jason Smith is suggesting a tax on the $840 billion college endowments. These endowments will soon eclipse $1 trillion in size – which is more money than the entire GDP of many countries.
It’s high time that bloated and entitled universities pay “their fair share” for the government services they use.
Why not? Their professors forever lecture us about tax “fairness,” but the schools where they teach a few hours a week for their munificent salaries are the very embodiment of mostly-white “privilege.” They are are the richest institutions in the world that go untaxed.
The cost of this leakage to the tax base is going to grow exponentially as this generation of billionaires (Bezos, Gates, Zuckerberg and others) pass on trillions of dollars – much of it will enter into the vaults of the universities. These are capital gains that have NEVER been taxed – and never will be.
Why is this a problem?
A good and just tax system has a broad base – so everyone pays – but a low rate so the tax system doesn’t discourage, work, saving and investment. This means no loopholes and carve outs that allow the rich to keep their fortunes out of reach of the tax man.
What makes the college endowment scam even worse is that the preponderance of the dollars don’t go to small colleges or community colleges, but rather the Harvards, Yales, Stanfords and Princetons that are already layered with gold and service the elite of society.
It makes no sense that millionaires and billionaires can make seven, eight and even nine- figure donations to their Alma mater and these funds escape the taxes that all the rest of us pay.
It’s even worse than that. Colleges pay almost no income taxes and generally avoid paying property taxes even though their vast tracts of valuable land are in or near struggling inner cities.
The universities openly boast to their donor base: contribute to us and you can avoid paying the estate tax and capital gains tax on your billions. Why aren’t liberals offended by this tax escape hatch?
I have no problem with a deduction for legitimate charities like soup kitchens and homeless shelters and orphanages. But Northwestern and Stanford need tax breaks? Has anyone been to their glitzy campuses.
There are at least a dozen schools bulging with $10 billion endowments and scores more with more than $1 billion. We should call these schools Loophole U.
What public purpose is advanced by these storehouses of wealth?
Harvard’s near $50 billion endowment is so large that the school could charge free tuition to every student from now until kingdom come – and still not run out of money. Yet Harvard still charges $100,000 a year for tuition and room and board.
But this is the real sin of this unworthy tax loophole. Even with these giant endowments, college tuitions have been rising at two to three times the rate of inflation. The argument that tax-free donations make colleges more affordable has proven to be patently false. The bigger the endowment the more the schools charge students and their parents – and taxpayers.
One of the best ways to help inner cities would be to require all universities (and hospitals) to pay property taxes. This would broaden the tax base in poor cities where nonprofits have grabbed the most valuable real estate. Instead of chasing people out of the cities like Boston, Chicago, Philadelphia and New York with exorbitant taxes, dinging the big U down the street would allow cities to CUT their taxes for everyone else.
By the way, colleges and hospitals make use of city services even more than homeowners and mom and pop businesses do. Why should they not pay for these services?
Richard Vedder a famous economist at the University of Ohio has noted that “one of the most regressive policies in the tax code is the subsidies to the billion-dollar universities. This only Makes the Rich, richer.”
In a famous scene in the movie Animal House, Dean Wormer lectures to one of the students who is facing expulsion: “Fat, drunk and stupid is no way to go through life, son.”
Ironically, that could describe more than 100 overly-endowed universities today that are more like investment houses that happen to have classrooms and students roaming around. Colleges need to pay their fair share, and the revenues should be used to help pay for the Trump tax cuts – which benefit everyone. That sounds fair to me.
Stephen Moore is a contributor to The Daily Caller News Foundation, a visiting fellow at the Heritage Foundation, and a co-founder of Unleash Prosperity.
A proposed measure to close a significant loophole in Arizona’s election security passed the State Senate last week, bringing it one step closer to the 2026 election ballot. Senate Concurrent Resolution (SCR) 1027, sponsored by Senator Shawnna Bolick (R-2), aims to prevent foreign actors from influencing the state’s elections, especially in relation to ballot measures.
The resolution would prohibit foreign nationals, entities, and committees from contributing money or services to influence the outcome of any election in Arizona. If SCR 1027 passes the House and receives voter approval, it would be placed on the 2026 ballot, where Arizona residents will have the opportunity to cast their votes on whether to ban foreign money from election-related activities.
Senator Bolick says the bill is a response to an ongoing vulnerability in the election process that allows foreign money to potentially sway the outcome of elections. While contributions from foreign nationals to political committees are already prohibited, the current laws do not extend this prohibition to all aspects of the election process, particularly when it comes to ballot measures.
“This is a commonsense, carefully crafted measure to ensure that Arizona’s elections are free from foreign interference,” said Bolick. “The people of Arizona must be confident that foreign funds are not influencing any part of our election process. If the House approves SCR 1027, the people of Arizona will have the chance to vote on this measure to say once and for all—no foreign money in ANY part of our elections in Arizona.”
The measure is designed to add a layer of transparency and accountability to election funding. Under SCR 1027, any person or group attempting to influence the outcome of a ballot measure would be required to file a campaign finance report within 48 hours of making an expenditure. They would also need to certify under penalty of perjury that no foreign national provided funding or resources for preliminary election activities. This would be enforced by the Secretary of State’s office to ensure compliance.
Arizona is not alone in its concerns; other states have passed similar laws in recent years to protect their elections from foreign meddling. In 2020, Washington State implemented restrictions on foreign donations to initiatives, following concerns over foreign money being funneled into state campaigns.
Supporters of SCR 1027 argue that this measure will protect the integrity of the state’s election process and send a strong message about Arizona’s commitment to safeguard its elections from foreign influence. Critics, however, may raise concerns about the potential for overreach or unintended consequences that could hinder legitimate political activity.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
Arizona Congressman Abraham Hamadeh introduced the Veterans Readiness & Employment Transparency Act last week in bipartisan collaboration with Rep. Juan Ciscomani along with Reps. Jonathan Jackson (D-IL), Rep. Greg Murphy (R-NC), Rep. Hank Johnson (D-GA), Rep. Sam Graves (R-MO), and Rep. Rob Wittman (R-VA).
According to Hamadeh, the bill is designed to increase the access and the responsiveness of the Veterans Readiness and Employment (VR&E) program.
At present the VR&E program, which assists veterans with job training, education, employment accommodation, resume development, and job-seeking skills coaching, lacks a hotline for veterans and there is no accessible contact information provided by the regional offices where average wait times by regional office ranges from 2 weeks to 158 days.
At the Phoenix regional office, the average wait time for a veteran in need of assistance currently stands at 68 days to see a Vocational Rehabilitation Counselor for an initial evaluation. Congressman Hamadeh said in a statement, “Many say VR&E program is the Department of Veterans Affairs’ best-kept secret, but many veterans and campus administrators can’t get the Department’s help with the onerous application process—or even know where to begin. Veterans are often ignored by their VR&E counselors – with no recourse, adding to often extreme wait times.”
In a post to X the Congressman wrote, “Our veterans did not delay when heeding the call of our nation, & our nation cannot delay when our veterans call for assistance Congressman Hamadeh’s Veterans Readiness & Employment Transparency Act is common-sense legislation that has bipartisan support.”
The new bill will require the establishment of a hotline, that all regional offices “must display a name, email, and number online for vets with VR&E questions,” and that regional offices hold Q&A sessions on the VR&E program at every school in their area of responsibility. The new bill will also require an annual report on vocational training extension waivers and requires that they be approved or denied within 30 days.
Rep. Juan Ciscomani, who joined Hamadeh on the bill, wrote “When our veterans return home, they deserve to be able to easily access the support and benefits their service earned.”
“Unfortunately, due to unnecessary bureaucracy, many veterans have difficulty accessing VR&E programs that help with job training, education, and employment accommodations, especially for those who were injured in the line of duty. I am proud to join my fellow Arizona colleague Rep. Hamadeh in a bipartisan effort to make VR&E programs more accessible to veterans in my district, and across the country.”
Arizona’s House Republican leadership has issued a strong condemnation of Governor Katie Hobbs’ handling of the state’s Developmental Disabilities (DDD) program, citing a $122 million budget shortfall and accusing the administration of gross mismanagement. The joint statement, released last week, criticized the governor for reckless spending decisions and a lack of consultation with the legislature, which they say has contributed to a financial crisis in the program.
House Speaker Steve Montenegro, Majority Leader Michael Carbone, Majority Whip Julie Willoughby, and Speaker Pro Tempore Neal Carter joined forces to decry what they called Hobbs’ failure to take responsibility for the growing issues facing the program. The DDD program, which serves Arizona’s most vulnerable citizens—those with developmental disabilities—has seen its financial situation worsen due to an unsustainable increase in costs.
The Arizona Developmental Disabilities program is a $4 billion initiative that provides essential services and care for individuals with developmental disabilities. According to the House Republicans, the program is on track to double in cost from fiscal year 2023 to fiscal year 2026, creating a serious budget shortfall that the governor’s office has failed to adequately address.
Republican leaders were especially vocal in their criticism of Governor Hobbs’ management of the program, accusing her of making “reckless spending decisions” that have led to the current crisis. The lawmakers pointed out that the governor’s administration had failed to work collaboratively with the legislature to develop solutions, instead opting for unilateral actions that have only exacerbated the problem.
“Governor Hobbs’ gross mismanagement puts Arizona’s most vulnerable citizens at risk,” the joint statement reads. “Her administration’s reckless spending decisions—made without consulting the Legislature—have bankrupted the DDD program, creating an avoidable crisis. Now, she’s demanding a taxpayer bailout without accountability or reforms.”
Adding fuel to the fire, the House Republicans also highlighted the recent shake-up within the governor’s administration. Governor Hobbs’ budget director resigned, she demoted the director of the Department of Economic Security (DES), and removed her health policy advisor—all actions that Republican lawmakers argue signal a lack of leadership and accountability within the administration.
Instead of collaborating with lawmakers to address the growing concerns, House Republicans claim that Governor Hobbs has deflected blame, choosing to focus on political tactics rather than on solving the issue at hand. They argue that these leadership changes are a direct result of the administration’s inability to manage the program effectively.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
Two New Mexico teenagers were arrested near Palominas, Arizona, on charges that they transported three illegal immigrants on March 1st. The illegal immigrants were identified as Mexican nationals by U.S. Customs and Border Protection (CBP).
CBP’s Tucson Sector announced that as agents patrolled a well-known smuggling route, they observed a person wearing camouflage and began to investigate. While investigating, the agents spotted a black Dodge Ram pickup truck and initiated a traffic stop to perform an immigration inspection on the vehicle.
According to the agents, they discovered the teenagers, a male and female both aged 17, in the front of the vehicle with three older men attempting to conceal their presence in the back seat of the truck. The three men were confirmed to be Mexican nationals who had entered the U.S. illegally, while both the driver and front-passenger were confirmed to be U.S. citizens.
The driver and his female passenger were placed under arrest and transported to the Brian A. Terry Border Patrol Station, and the agents seized the pickup truck. The driver is facing prosecution for human trafficking, a felony under 8 U.S.C 1324 and could face anywhere between one and ten years in prison. The female passenger is not facing charges at this time.
According to the press release from CBP, the three illegal immigrants have all been previously removed from the U.S. and are now facing the reinstatement of their prior removal orders and will serve as material witnesses in the prosecution of the driver.
In a post to X, Chief Patrol Agent (CPA) of the U.S. Border Patrol’s Tucson Sector John R. Modlin wrote, “A U.S. Citizen juvenile was arrested near Palominas, AZ for smuggling 3 illegal aliens. The 17-year-old smuggler faces felony charges of 8 USC 1324 Transporting an Alien Who is Unlawfully Present in the US.”
3/1: A U.S. Citizen juvenile was arrested near Palominas, AZ for smuggling 3 illegal aliens. The 17-year-old smuggler faces felony charges of 8 USC 1324 Transporting an Alien Who is Unlawfully Present in the US.https://t.co/LAv5oT9qQLpic.twitter.com/E5DQXg3P8L
