GOP Weighs 21% Tax On University Endowments

House Republicans are considering a proposal to increase taxes on wealthy university endowments, which could raise rates from 1.4% to 14% or 21% depending on the endowment size. This plan is part of a broader effort by President Trump and his allies to assert greater control over elite institutions. The measure targets schools like Harvard and Yale, which have per-student endowments exceeding $500,000. Republicans argue that this move would ensure universities direct more money towards student needs and away from initiatives opposed by conservatives. President Trump has also been pushing for a tax increase on Americans making at least $2.5 million annually, or couples making $5 million. Trump suggested that Republicans "should probably not do it," but said he's "OK if they do." The president is concerned that Democrats would use the tax increase as a campaign issue, citing George H.W. Bush's broken promise not to raise taxes. Trump has also reiterated support for ending the carried interest tax break, a benefit claimed by private equity and venture capital managers. The proposal is an attempt to mitigate concerns over the GOP's plans to make Trump's 2017 tax cuts permanent without cutting entitlement programs. House Republicans face mounting fiscal pressure in drafting a multi-trillion-dollar package aimed at extending the 2017 tax cuts while enacting new promises.