Thursday, May 22, 2008

Plans to tax rich colleges prompt US debate

Plans to tax rich colleges prompt US debate

By Rebecca Knight in Boston

Published: May 21 2008 21:35 | Last updated: May 21 2008 21:35

A proposal in Massachusetts to impose a tax on the state’s wealthiest universities has stirred a national debate about whether US colleges should be stripped of their non-profit status.

Under the proposal, the state would levy a 2.5 per cent tax on the portion of college endowments exceeding $1bn (€630m, £510m). University leaders and higher education officials have condemned the plan.

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