How the Richest U.S. Colleges Get Richer Through Huge Tax Subsidies
“According to a study by Stanford University scholar Charlie Eaton, universities are using their endowments to haul in more than $19 billion in tax subsidies every year. The analysis, which compiled data from 1976 to 2012, found that as the tax expenditures have flowed to college endowments, those endowments have exponentially grown—and have funneled billions to Wall Street money managers who make big fees off the pools of cash. Despite the tax breaks and the flood of cash to Wall Street, many of the universities that benefit from the subsidies have refused to use their additional endowment resources to expand enrollment, admit more low-income students or lower their tuition rates.”