A tax on wealthy college endowments isn’t set to be collected for more than a year, yet schools are working behind the scenes to roll it back.
A group including Yale University is trying to help two members of the U.S. House of Representatives, a Republican and Democrat, get more sponsors for a bill to repeal the tax, Richard Jacob, who oversees federal and state relations at the New Haven, Connecticut school, said in an interview.
Drew Faust, Harvard University’s outgoing president, is scheduled to meet this week with the co-sponsors, Alabama Republican Bradley Byrne and John Delaney, a Democrat from Maryland.
“I will be encouraging elected officials to undo this damaging and unprecedented tax on the charitable sector, and in doing so to support education, financial aid, student success, and medical research,” Faust said in a statement.
Yale and Harvard are some of the 30 private colleges that would pay the tax, which isn’t adjusted for inflation. Byrne believes the original endowment tax provision is bad policy, said Seth Morrow, his spokesman. Legislators are trying to advance the repeal bill either as a stand-alone or attached to another bill, he said.