Poll: Americans split on college endowment tax
Private schools aim to repeal new levy on endowments.
Americ ans are divided over whether U.S. college endowments should have to pay a new federal tax, according to a national survey on higher education.
Fifty percent of respondents sided with the wealthy private schools, while 43 p e r c e n t a g r e e d t h e t a x should be levied and 7 percent were unsure, according to data published Monday by Boston public media producer WGBH News, which surveyed about 1,000 adults ages 18 to 65.
As the price of college has increased more than inflflation over decades and student debt has surpassed $ 1 . 5 t r i l l i o n , A mer i c a n s have questioned the value of higher education.
Yet more than two-thirds in the poll said they believe colle ges and universitie s have a positive impact on society.
“We decided it was critically important to our audience to take the country’s pulse on some fundamental questions about higher education, including whether or not Americans still value a college degree,” said Ken Cooper, who oversaw the project for WGBH News.
The tax bill passed last December added a new levy on c ol le ge endowments, which schools are actively working to repeal.
The 1.4 percent t ax on net investment gains of private university endowments worth more than $500,000 per student affects about 30 schools.
T h e b i g g e s t s h a r e o f schools — about 20 percent — are in Massachusetts, including Harvard University, the Massachusetts Institute of Technology and Amherst College.
F i f t y - f o u r p e r c e n t o f respondents ages 18 to 29 believe endowments should be taxed, whereas the majorit y of those over 30 think they should be tax-free. The survey also found that 46 percent of Republicans and 49 percent of Independents favor the tax, compared with 38 percent of Democrats.
The poll also found that a majority of respondents support a racially and ethnically diverse student body, yet overwhelmingly oppose the use of race as a factor in college admissions.
The poll was conducted Aug. 21 to 25 by Abt Assoc i a t e s , w h i c h p r o v i d e s re s e a rc h and c onsul t i ng services in areas including education, health, environment and social policy. Clients range from U.S. federal government agencies to universities, some of which would pay the tax.