The tax reform plan released last week by House of Representatives will have a negative impact on all higher education institutions, including Drexel University. There are several harmful provisions, including: an excise tax on private university endowments; elimination of tax-exempt municipal bonds, which would increase construction costs; elimination of the student-loan interest deduction; elimination of tax-free tuition reimbursement from employers; and an excise tax on private university endowments.
Each provision alone is problematic, but combined this bill is an attack on higher education, long one of our country’s greatest strengths in growing and advancing our economy. The bill would hurt universities’ financial health, increase costs for students, and reduce our ability to attract top talent.
While most agree on the need for tax reform, the legislation introduced by Rep. Kevin Brady of Texas, would create long-lasting damage to higher education as several articles here, here and here make clear.