I mean't the OP struck a nerve with volpunter in that post I made earlier. I agreed with your statements on the subject.
Is It Time to Tax Harvard’s Endowment?
- Thread starter rmorse
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I mean't the OP struck a nerve with volpunter in that post I made earlier. I agreed with your statements on the subject.
nobody struck any nerves, it just makes me chuckle when a jealous unskilled worker, who calls himself "Introducing Broker" and who is basically skimming the spread to introduce to another FCM which is basically another middle man that also skims a profit, comes around and moans about endowment funds not being taxed. It sounds more like a poor guy who cannot accept that some private institution that lawfully registered as non-profit decides for itself how to allocate funds.
Harvard's Dean make's the most in the Country, they were trying to say he should make what the CEO of a Fortune 500 Company makes, that's not part of education, administration eats so many costs its nuts! We pulled out our kid from school because it was failing badly, the school must cater to a disproportionate amount of Spanish speaking kids. The teacher said my son was struggling because he was so bored, the teacher had problems communicating with all her 7 year olds who can't speak English. The native speakers(13 out of 36) waste half the day doing nothing as the public schools fail one Federal Test after another. The teacher is going to melt with all her pressure, strange days we live in!
What do we do about schools that cant teach at levels our kids can understand and burn up all the resources on Spanish aids, admin leaving the kids with books 12 years old?
What do we do about schools that cant teach at levels our kids can understand and burn up all the resources on Spanish aids, admin leaving the kids with books 12 years old?
rmorse
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I have no problem with this. Hire the best and the brightest. Pay them well. My focus is that they are a nonprofit institution. They should not be charging to "make money",they should be charging to cover the cost of the education, but that cost is being covered by endowments and earning from those endowments.
I agree bob. They should be required to spend a certain amount of their endowment investment gains a year (like charitable foundations) or lose their tax advantage on their investment gains.
and leave it to the efficient government to provide charitable services and raise taxes to provide somewhat similar services which would go to an already bloated and overpaid government bureaucracy.
there would be no itemization. Pretty pathetic if people wont donate if they don't get a tax break.
I don't know about Harvard, but I know Stanford doesn't charge any tuition for children who's parents make less than $100,000/year, and doesn't charge tuition or room and board for children who's parents make less than $60,000 per year. It's graduated as you go up past that point. So essentially they aren't charging any tuition at all for the vast majority of people who are really impacted by tuition, which is possible because of the growth of donations through their endowment.
That said, the non-profit status does lead to some weird issues that the universities don't openly exploit only because it would highlight the "hedge fund with a university attached" view. For example, a university's endowment can generally issue tax free bonds where the bondholders don't pay tax on the interest. This allows them to issue the bonds at a rate lower than the prevailing interest rate, the delta is essentially the taxes buyers save by buying a tax exempt bond vice one with taxable interest. Lets say that's 30%, so if prevailing interest rates are 10% they could issue their bond for 7%.
But if prevailing interest rates are 10%, they can take the proceeds from that bond and invest them in an interest bearing account that yields 10%. Risk free money, courtesy the tax code! Obviously some haircuts here, but taxes are high enough that it still works out.
Knowing this looks bad, they don't invest the proceeds of a bond issuance directly in an interest bearing account. However I'm sure there are a few that have enough money in the bank to build that new building, but instead leave it in the bank earning interest and issue a bond for the cost of the building, effectively achieving the same result.
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that is a baloney: your daughter's friends either never applied there or did not tell her everything
unfortunately a lot of people think that Harvard (or any Ivy) is more expensive that any third rate private school - it is not..., especially for needy person
ivy schools give most generous
as for the original premise of the first post: imho there should not be any corporate taxation (tax should be paid by people only), neither there should be consumption taxation , only small flat personal tax, equal for everybody
Lol sure, if everyone declared income then no corporate taxes were necessary. Guess why nobody wants to tackle tax reform? Because billion dollar interest groups are fighting any change.