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US Senate targets elite universities with 8% endowment tax; Harvard could lose $200 million annually
The US Senate Finance Committee has proposed raising the endowment tax on wealthy universities to 8 percent, potentially costing Harvard $200 million annually. This sixfold increase from the current 1.4 percent rate would impact nine elite institutions with large endowments. Harvard officials warn the tax would hurt financial aid, research, and faculty hiring. The proposal, part of President Trump’s broader tax bill, follows rising political pressure on elite US universities, as reported by The Harvard Crimson.
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