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’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.
The Arizona State Senate recently passed a bill aimed at addressing the ongoing shortage of election officers in the state. Senate Bill 1319, sponsored by Senator Tim Dunn (R-25), received strong bipartisan support and is now on its way to the House of Representatives for further consideration.
The bill proposes a change to the current certification process for election officers by allowing certification to occur in even-numbered years, rather than just in odd-numbered years. This adjustment is designed to ensure that Arizona has enough trained personnel to manage elections, particularly in general election years when voter turnout and election complexity tend to be higher.
Arizona law currently requires election officers, clerks of the board of supervisors, or county recorders to hold a valid election officer’s certificate, which is issued by the Secretary of State before January 1 of each general election year. However, the certification process currently only takes place in odd-numbered years, leaving a narrow window to ensure that election officers are adequately prepared for the upcoming election season.
SB 1319 aims to address this issue by shortening the certification window. Under the new legislation, individuals seeking to serve as election officers would be required to obtain their certification before June 1 of even-numbered years, allowing more time for training and preparation before the general elections.
The bill seeks to ensure that election officials have the training they need and that the state is not facing a shortage of qualified election officers by allowing certification in the first half of an election year. This adjustment would also allow for better planning and coordination in advance of elections, making it easier for county officials to recruit and train election officers in a timely manner.
Senator Dunn emphasized the importance of ensuring that Arizona’s election system is well-staffed and efficiently run. “We need to ensure that our election officials are properly trained and certified,” Dunn said. “This bill allows certification for the first six months of an election year instead of in odd years only. When we pursue commonsense solutions, bipartisan election policy is possible, and we can improve and secure the election process for all Arizonans.”
Dunn also praised the bipartisan support the bill received, acknowledging that cooperation across party lines was critical in crafting a solution to this ongoing issue. “I applaud my colleagues in both chambers for coming together and seeing value in this legislation,” he added. “I’m optimistic this bill will make its way to the governor’s desk for signature.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
On Monday, the Arizona State Senate passed two key pieces of legislation aimed at improving the security and integrity of the state’s election system. These bills, which will now move to the House of Representatives for further consideration, seek to bolster Arizona’s efforts to prevent election fraud and increase voter confidence in the electoral process.
The two bills, SB 1123 and SB 1063, were sponsored by State Senator Mark Finchem, a vocal advocate for election reform. SB 1123 proposes a series of enhanced security measures to protect ballots from fraud and tampering, while SB 1063 focuses on expanding civic participation in the election process.
SB 1123 is a comprehensive measure that aims to implement a variety of advanced security features on Arizona’s ballots. Under the proposed legislation, election officials would be required to use at least three fraud countermeasures including watermarked security paper, secure holographic foil, and forensic fraud detection security inks, among other possible countermeasures.
According to Senator Finchem, these measures are designed to ensure that every ballot is both secure and verifiable. “Arizonans deserve fair and accurate elections, free from fraud and illegal influence,” said Finchem. “This bill was carefully crafted and is a commonsense solution that will increase voter confidence. By adding these countermeasures to our ballots, we can ensure that every vote is accurately counted, verified, and speaks to citizens and the right to exercise their franchise.”
The proposed security features are intended to make it more difficult for bad actors to manipulate or counterfeit ballots. Proponents of the bill argue that these enhancements are essential for safeguarding Arizona’s elections.
SB 1063, also sponsored by Finchem, offers a unique solution to encourage greater civic engagement. This bill allows jury commissioners to offer qualified jurors, who receive a jury summons between 120 and 90 days before a general election, the option to serve as temporary election workers instead of fulfilling their jury duty obligations.
The idea behind this measure is to increase the number of available election workers during election season, which can often be a logistical challenge. By providing citizens with the choice to participate in either jury duty or election work, the bill aims to create greater oversight during elections and reduce the risk of fraudulent activity.
“Extending civic duty services to allow citizens the choice to participate in jury duty or elections will ensure greater oversight in an effort to deter the schemes pulled by fraudsters,” said Senator Finchem. “Senate Republicans will continue to work in good-faith to provide Arizonans with much-needed reforms to uphold the integrity of our election process.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
