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Revised US endowment tax hits Ivy League universities, while smaller elite colleges remain unaffected
A new US law has significantly increased taxes on the endowment earnings of wealthy universities, particularly impacting larger institutions with over $2 million per student. However, a last-minute amendment exempts smaller elite colleges with fewer than 3,000 students, regardless of their endowment size. This shift, influenced by political maneuvering, creates winners and losers in higher education funding.
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