>>22661531 /pb
>I completely missed that Republicans introduced a bill to increase the endowment tax from 1.4% to 21%. If passed, Harvard would go from paying ~$35m to $525m/yr in federal taxes (that’s 8.2% of its current operating expenses)
This is interesting as many people might not think through the implications.
This potentially destroys the world of private equity and hedge funds who all depend on this university money. University endowments, which likely get kickbacks or seed around the extra money that would have otherwise gone to taxes to leftist causes, are going to pull money from private markets and black boxes and just invest into public markets, boosting the gains of regular investors, pension funds, etc.
It's hundreds of billions that will come into the public markets…
…if they can be first in the mad dash out the door from locked up funds in shit PE and other time-locked funds.
What might be even better is if they cannot get out in time, they'll likely lose out on the gains in the public markets resultant from other activities…essentially missing out on what they should have been paying.
Poetic Justice if it happens.