Bipartisan legislation that would repeal a new excise tax on large endowments included in last year’s tax reform bill was introduced Thursday in the U.S. House, Pensions & Investments reported. Beginning in tax year 2018, large endowments will have to pay a 1.4% excise tax on net endowment income.
As a result, the leaders of 49 wealthy postsecondary institutions sent a letter to congressional leaders urging them to repeal or amend the so-called “endowment tax.” Amherst, Bryn Mawr, Franklin & Marshall, the Juilliard School, the Princeton Theological Seminary, Brown, Duke, Rice and Stanford all signed the letter. Inside Higher Ed has the story.
A coalition of student groups at the University of Michigan called for the board of regents to increase the transparency of the investments it makes from its more than $11 billion endowment, Detroit Free Press reported.
The CFO of Dubai-based Abraaj Holdings told Reuters he had left the embattled private equity company. Two other senior executives are also preparing to leave. Investors in the buyout firm include the Bill & Melinda Gates Foundation and the World Bank.