Endowment tax

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Endowment tax is taxation of endowments. The city of Cambridge, Massachusetts, has proposed taxing MIT on these previously exempt, non-profit earnings.^[1] A financial endowment is a transfer of money or property donated to an institution, with the stipulation that it be invested, and the principal remain intact. The total endowment can be over a billion dollars at some of the United States' richest universities. The non-profit status of some institutions like hospitals has been questioned in the United States House Ways and Means Committee ^{[2] [3]}

[edit] See also

• List of U.S. colleges and universities by endowment
• Internal Revenue Service (US tax collection agency)
• PILOT Payment in Lieu of Taxes

[edit] References

1. ^ He, Ray C. (October 4, 2005.). "Cambridge Seeks to Tax Earnings on Endowment" (Web). Volume 125, Number 44. The MIT Tech. http://tech.mit.edu/V125/N44/cambsurcharge.html. 
2. ^ "Ways and Means Questions Nonprofit Hospitals' Tax Status" (Web). The Commonwealth Fund 1 East 75th Street, New York, NY. http://www.cmwf.org/healthpolicyweek/healthpolicyweek_show.htm?doc_id=278529. Retrieved on 2007-01-22. 
3. ^ Jill Horwitz (2005-05-26) (PDF). Testimony Before House Ways and Means Committee. http://www.sph.umich.edu/cleh/papers/horwitz.pdf.