Endowment

Writing for The Boston Globe, President Emeritus L. Rafael Reif examines how the proposed endowment tax on colleges and universities will likely “raise the cost of a college education and hurt US competitiveness.” Reif notes that universities use income from their endowments to provide financial aid for students and support research. “Without financial aid, students from less wealthy backgrounds would not be able to attend the country’s great private universities,” writes Reif. “This would be not just a loss to them but also to the nation itself, which benefits when talented people from all backgrounds have the same opportunity to rise based on academic achievement.”

Bloomberg's Tom Moroney spoke with MIT President L. Rafael Reif about the tax bill's impact. Describing the tax as a "budget cut" for MIT, Reif emphasized higher education's vital role in America's innovation economy and said it's counterproductive, "to hurt the institutions that create innovation, create startups, and prepare people for those jobs."